ANNUAL - GTAC · 2017-05-13 · ANNUAL REPORT 2014/15 Government Technical Advisory Centre &...

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ANNUAL REPORT 2014/15

Government Technical Advisory Centre

&

National Treasury Programme 8:

Technical Support and Development Finance

ANNUAL REPORT

2014/15

GTAC Private Bag X115 Pretoria, 0001, South Africa Tel: +27 12 315 5111 Fax: +27 12 315 5786 ISBN: 978-0-621-43852-9 RP: 245/2015 This report is also available on www.gtac.gov.za

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Mr NM Nene Minister of Finance

I have the honour of submitting the Annual Report of the Government Technical Advisory Centre and the Technical Support and Development Finance Programme for the period 1 April 2014 to 31 March 2015.

Andrew Donaldson Acting Head: GTAC

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CONTENTS

MINISTER’S FOREWORD ................................................................................................... 4

REPORT OF THE ACCOUNTING OFFICER........................................................................ 5

ACCOUNTING OFFICER’S STATEMENT OF RESPONSIBILITY ....................................... 7

PART A: GENERAL INFORMATION ................................................................................... 8

Legislative mandate ........................................................................................................... 9

Mission statement and values ........................................................................................... 9

Strategic overview ........................................................................................................... 10

Organisational structure .................................................................................................. 12

PART B: PROGRAMME INFORMATION ........................................................................... 13

Government Technical Advisory Centre .......................................................................... 14

Independent Power Producer Procurement Programme ................................................. 55

National Treasury Programme 8: Technical Support and Development Finance ............. 58

PART C: FINANCIAL INFORMATION ............................................................................... 83

Report of the Auditor-General to Parliament on the Government Technical Advisory Centre ............................................................................................................................. 84

Annual financial statements ............................................................................................. 90

PART D: HUMAN RESOURCES MANAGEMENT ........................................................... 119

Human resources oversight: statistical information ........................................................ 120

PART E: GOVERNANCE ................................................................................................. 143

Risk management ......................................................................................................... 144

Internal audit report ....................................................................................................... 144

ANNEXURES ................................................................................................................... 145

Annexure 1: Annual performance tables ........................................................................ 146

Annexure 2: Abbreviations ............................................................................................. 156

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MINISTER’S FOREWORD

Minister Nene It gives me great pleasure to welcome the first annual report of the Government Technical Advisory Centre (GTAC).

The Public Finance Management Act (1999) requires the National Treasury to promote transparency and the effective management of revenue, expenditure, assets and liabilities of departments, public entities and constitutional institutions. It also enjoins the National Treasury to assist organs of state in building their capacity for efficient, effective and transparent financial management.

GTAC’s mandate gives effect to these obligations. Although recently constituted as a separate government component, GTAC’s programmes and activities have evolved over several years. In addition to its in-house advisory and technical support capabilities, it has extensive experience in hiring professional service providers with public-sector expertise.

Building state capacity requires partnerships with the private sector in infrastructure development, operational improvements, technology and management systems. It also requires collaboration with university research and advisory centres, civil society organisations and international partners.

GTAC’s scope of work is wide, from administering job-creation projects, to strengthening municipal finance management, to providing advice on specialised transactions. Prioritisation is that much more important when there are many areas of possible assistance and a wide range of skills are sought.

In introducing this first consolidated account of the National Treasury’s technical support activities, I look forward to vigorous engagement on the lessons of our experience and priorities for the period ahead.

Nhlanhla Musa Nene Minister of Finance

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REPORT OF THE ACCOUNTING OFFICER

Andrew Donaldson Acting Head and Accounting Officer of GTAC This is the first annual report of GTAC, established in terms of a 2012 proclamation and the subsequent assignment of functions by the Minister of Finance. GTAC’s origins are rooted in two initiatives of the National Treasury undertaken about 15 years ago:

The establishment in 2000 of the Public-Private Partnership (PPP) Unit in the Budget Office to support the new regulatory framework for national and provincial PPP projects.

The formation of the Technical Assistance Unit in 2001 in the Public Finance Division, building on the project and programme management services previously housed in the Reconstruction and Development Programme Office.

In subsequent years, the mandate of the PPP Unit expanded to include municipal projects, and the Technical Assistance Unit broadened its project management focus to include organisational development and planning support, infrastructure development and public finance management. In addition, several specific programmes were initiated to support provincial and municipal infrastructure delivery, neighbourhood development and improved financial management. In 2011 the Jobs Fund was launched.

While grounded in the National Treasury’s oversight of the Public Finance Management Act and its capacity-building responsibilities, these programmes are largely externally focused. In other words, they came about from the identified needs, project proposals or requests emanating from other departments or organs of state. As demand for these services grew, the idea gained impetus that externally oriented advisory and support services should be accommodated in a separate entity with an arms-length relationship with the National Treasury.

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In 2012, the Ministers of Finance and Public Service and Administration approved the establishment of GTAC as a government component, giving effect to the vision of a self-standing entity within the public service to provide advisory and professional support services.

In April 2014, the Minister of Finance signed off on the transfer to GTAC of the advisory functions of the former PPP Unit, the Technical Assistance Unit, the Jobs Fund Project Management Unit, the National Capital Projects Unit and the Performance and Expenditure Review Programme. Implementation of this transition has been supported through an administrative shared service agreement with the National Treasury.

GTAC’s first year has been one of consolidating existing programmes and activities, while consulting and reflecting on strategic priorities and possible organisational shifts or adjustments. Full responsibility for administration of the Jobs Fund has been transferred from the Development Bank of Southern Africa. New partnerships have been initiated with the Office of the Accountant-General and the National Treasury’s Intergovernmental Relations Division to implement a second Municipal Finance Improvement Programme (MFIP) and the new Cities Support Programme.

Progress has been made in policy advice, financial analysis and organisational support across a wide range of issues, including energy security, broadband investment and industry structure, border ports of entry management, school district administration and regional economic development. GTAC assisted in the first two Phakisa initiatives, focused on the oceans economy and health clinic management.

This report also includes information on the National Treasury’s Programme 8 activities. GTAC shares management responsibilities for this programme with the Intergovernmental Relations Division and the Office of the Accountant-General.

Leading GTAC’s management team in this first phase of developing a new agency and shaping its future programmes has been a special privilege. Constructive collaboration with senior managers and staff of the National Treasury, other national and provincial departments, and several partner organisations has played a vital role in our progress. The leadership of Minister Nene and Deputy Minister Jonas has been invaluable in guiding our focus on high-impact initiatives and priorities while supporting innovation and renewal.

Andrew Donaldson Acting Head and Accounting Officer: GTAC

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ACCOUNTING OFFICER’S STATEMENT OF RESPONSIBILITY

Statement of responsibility and confirmation of accuracy for the annual report for the year ended 31 March 2015:

I confirm the following:

The information and amounts disclosed in this annual report are compiled from the records of GTAC and the National Treasury, and accurately reflect, subject to the limitations of these records, the activities of GTAC and the Technical Support and Development Finance Programme.

To the best of my knowledge and understanding, the annual report is complete, accurate and free from material misstatements.

The annual report has been prepared taking into account the relevant guidelines issued by the National Treasury.

Following a determination by the Minister of Finance and approval by the Accountant-General, the annual financial statements (Part C) have been prepared in accordance with Generally Recognised Accounting Practice standards and the National Treasury’s relevant frameworks and guidelines.

In its governance, human resource management, financial management and risk management arrangements for 2014/15, GTAC relied on a shared service agreement with the National Treasury, while developing internal capacity to provide these corporate support functions independently in future.

GTAC’s financial statements include the Independent Power Producer Procurement Programme (IPPPP) account, through which expenditure incurred by the Development Bank of Southern Africa on the IPPPP Office is reimbursed out of revenue derived from fees payable by bidders and investors. The accuracy of this account relies on information maintained and provided by the Development Bank of Southern Africa.

GTAC’s financial statements for the year ended 31 March 2015 have been audited by the Auditor-General, who is responsible for reporting on whether the financial statements are fairly presented. The report is found on page 84.

In my opinion, the annual report fairly reflects the operations, performance information, human resources information and financial affairs of GTAC and Programme 8 for the financial year ended 31 March 2015.

Andrew Donaldson Acting Head and Accounting Officer: GTAC 30 October 2015

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PART A: GENERAL INFORMATION

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LEGISLATIVE MANDATE GTAC was established on 30 March 2012 as a government component in terms of the Public Service Act (1994) through Government Notice 261, Gazette 35194.

GTAC, which forms part of National Treasury’s Programme 8: Technical Support and Development Finance, is mandated to provide advisory services, programme management and development finance support to improve public finance management, support high-impact government initiatives, facilitate job creation and strengthen infrastructure planning and delivery to the National Treasury, centre-of-government departments and other organs of state.

GTAC does this by:

Rendering technical consulting services within the public sector. Providing specialised procurement support for high-impact government initiatives. Advising on the feasibility of infrastructure projects. Providing knowledge management for projects undertaken.

GTAC provides advisory and project management support using core funding provided by the National Treasury and co-funding by international donor partners, while partially recovering professional service costs from client departments or entities.

MISSION STATEMENT AND VALUES GTAC helps organs of state build their capacity for efficient, effective and transparent financial management. Its work is based on the following values and principles:

Accountability. Integrity. Collaboration and partnership. Evidence-based learning. Public- and private-sector participation. Broad-based development.

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STRATEGIC OVERVIEW GTAC supports policy development, programme implementation and public finance management through advisory and professional support services, drawing on internal resources and independent service providers. It also contributes to public service research and capacity building by partnering with academic and research centres and developing public finance management training programmes.

GTAC’s approach to professional support services is based on three broad principles:

Client-focused and demand-driven programmes: Advisory and technical support responds to client needs and respects the ownership and accountability for services of responsible organs of state.

Diagnostic and management tools adapted to public-sector needs: Advisors and support staff use management tools, methods and practices rooted in South Africa’s legal and institutional frameworks to undertake and support projects, while drawing on experts in public-sector practice.

Capacity building through partnerships and learning by doing: GTAC’s approach is underpinned by a pragmatic and problem-solving approach to project support. It builds capacity through learning by doing and transferring skills through partnerships with other centres of expertise.

Within the context of government’s National Development Plan and medium-term strategic framework, GTAC aims to contribute to building a capable and development-oriented state, while strengthening government’s capacity to work with the private sector to promote growth, employment, infrastructure investment and public service delivery.

GTAC’s advisory and support functions and activities were organised as follows in 2014/15:

Transaction Advisory Services: Support for major infrastructure procurement projects, PPPs and service-delivery improvement transactions, including project conception and registration, transaction process support, and legal and financial advice.

Infrastructure and Capital Projects Appraisal: Infrastructure planning support, capital projects appraisal, network industry analysis and regulatory advice (particularly in the energy, transport, water and sanitation, and communications sectors).

Technical Consulting Services: Organisational development, and advisory and project management support for a range of national, provincial and municipal organs of state, consisting of four portfolio clusters:

Economic development and international relations. Social services. Infrastructure and rural development. Governance and administration.

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Public Economics and Expenditure Reviews: Evaluation of public expenditure and performance; environmental economics; planning, budgeting, reporting and monitoring of service delivery; and public finance capacity building.

GTAC also coordinates and provides management support for Programme 8, and operates a project development facility through which potential PPP projects, neighbourhood development partnership projects and employment facilitation projects are supported.

Two dedicated project management units have been incorporated into GTAC’s establishment and activities in 2014/15:

The MFIP: On behalf of the Office of the Accountant-General, GTAC has established a project management team to implement the MFIP II.

The Jobs Fund: During 2014/15, responsibility for planning, managing and implementing the National Treasury’s Employment Creation Facilitation Programme was shifted from the Development Bank of Southern Africa to GTAC.

The National Treasury established the Jobs Fund in June 2011 to support innovative initiatives and approaches to job creation. The Jobs Fund uses a “challenge fund” methodology, allocating grant funds to projects that have performed competitively against impact criteria. This competitive application process means that only the best ideas are funded.

The Jobs Fund aims to stimulate good ideas, risk-taking and investment to discover new ways of working, where the costs and risks may be unknown and where the pro-poor impact, principally in the form of sustainable job creation, may be significantly larger than that of conventional approaches.

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ORGANISATIONAL STRUCTURE GTAC forms part of the National Treasury’s Programme 8: Technical Support and Development Finance. It provides management support to the programme and administers several subcomponents of the programme on behalf of the National Treasury.

Figure 1: Programme 8 organisational structure

Figure 2: GTAC organisational structure

In its first phase of establishment, GTAC consisted of the following business units and personnel seconded from the National Treasury: the former Technical Assistance Unit, the PPP Unit, the National Capital Projects Unit and the Jobs Fund Project Management Unit. GTAC was assigned the Performance and Expenditure Review Programme, established through a partnership with the Department of Planning, Monitoring and Evaluation, as well as an ongoing project on environmental economics and fiscal issues. During the course of 2014/15, GTAC established a project management unit for the MFIP II by agreement with the Office of the Accountant-General.

GTAC’s advisory and technical support projects are undertaken in response to requests for support from other departments or organs of state. Project teams include GTAC staff, long-term technical advisors and professional service providers hired for specific projects. During 2014/15, GTAC appointed technical advisors through 105 professional services contracts. Corporate support services are in part provided through a service level agreement with the National Treasury.

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PART B: PROGRAMME INFORMATION

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GOVERNMENT TECHNICAL ADVISORY CENTRE GTAC provided technical and advisory support to 93 projects during 2014/15, including support for the Department of Public Works, developing the Border Management Agency business case, providing advice on the Department of Telecommunications and Postal Services’ broadband implementation strategy and providing support for the Wild Coast economic development plan in the Eastern Cape.

The centre also provided transaction support to the Passenger Rail Agency of South Africa (PRASA) rolling stock renewal programme, the Free State Department of Health’s investment in independent power capacity and a range of PPP projects.

GTAC’s long-term strategy is to provide a centre of excellence in policy advice and public finance management in partnership with academic and research centres focused on public-sector management and training. Project and programme management capacity in the public sector is supported through an active “community of practice”, and innovative approaches to local economic development are supported through the Economies of Regions Learning Network.

GTAC supports a research programme on employment, income distribution and inclusive growth based at the Southern African Labour and Development Research Unit at the University of Cape Town. It also seeks to promote public discourse and understanding of public policy, social and economic development and public finance management through publications, consultative forums and dialogue.

The Performance and Expenditure Review Programme was initiated as a joint project of the Department of Planning, Monitoring and Evaluation and the National Treasury, and is managed by GTAC. Nine performance and expenditure reviews were completed during the year, including studies on artisan training and technical and vocational education, the National Skills Fund, land restitution and the partnering of science councils with the private sector. The reviews aim to identify options that offer greater value for money in public expenditure and improve alignment in the use of development and service-delivery indicators for government-wide performance monitoring, budget planning and reporting.

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MANAGEMENT AND CORPORATE SUPPORT

Acting Head of GTAC: Andrew Donaldson

GTAC management, staff and professional advisory teams undertook several strategic planning reviews and consultations during 2014/15 to improve and strengthen existing activities and identify priorities.

Several key themes emerged from these discussions:

GTAC’s relationship with the National Treasury is central to its mandate and priority programmes. It will continue to focus on building capacity in public finance management.

GTAC’s diagnostic and problem-solving approach to organisational development and technical support remains an important foundation of its work, drawing on multidisciplinary expertise where necessary and engaging clients and stakeholders in the problem-solving process.

GTAC will continue to support government’s capacity for evidence-based programme and policy development, drawing on external centres of expertise and building a “knowledge hub” through learning networks and links with other organisations.

GTAC focuses on building public-sector client capacity by offering a combination of diagnostic services, organisational development, and programme and project implementation support. It provides support for PPPs and other major government transactions, and assists the National Treasury in appraising major capital projects and reviewing financing options.

During the past year, GTAC took over the administration of the Jobs Fund from the Development Bank of Southern Africa, enabling this critical intervention to be more closely aligned with other National Treasury and GTAC initiatives. Jobs Fund personnel were successfully seconded from the Development Bank of Southern Africa during the reporting period.

In 2014/15, GTAC started to develop its organisational structure, which included several drafts for consideration. GTAC’s human resource capacity is a combination of professional and administrative staff, long-term advisors and short-term consultants for specific projects.

GTAC’s corporate support services, financial management and specialised procurement support services are currently limited in capacity with a growing workload. The centre aims to expand its internal professional capacity while continuing to draw on consultant expertise where needed. It also receives reliable service and support from the National Treasury’s Corporate Services through a shared services agreement.

The financial management component is consolidating the former project development facility and technical assistance trading accounts into GTAC, and has continued to provide a professional accounting service to all projects and programmes, including management of a substantial portfolio of professional service contracts, cost recovery from client departments and agencies, and management of donor funds.

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Building a learning organisation: publications and partnerships

During 2014/15, GTAC established a dedicated publication and communication function. It has introduced several communication products to support GTAC’s internal development and to promote broader awareness of the centre and its outputs, including bimonthly and biweekly newsletters.

Progress has been made in developing the GTAC website, which will serve as the primary communication platform, including research, case studies, news and information about events and activities. The website will also become the primary vehicle for professional service procurement. GTAC aims to become a recognised repository of public finance research material, policy analysis and information about events, publications and important announcements.

During the past financial year, GTAC published three newsletters:

August 2014: An overview of GTAC’s establishment, including an introduction by the Minister of Finance.

October 2014: Focusing on the PPP Unit. February 2015: Profiling the National Capital Projects Unit.

The publication team also produced a brochure profiling Programme 8 activities, which it shared with Parliament in March 2015.

GTAC published eight issues of the biweekly WhatsUp newsletter in 2014/15, featuring news from the Jobs Fund, the PPP Unit and other National Treasury divisions, and highlighting activities and publications of partner organisations and networks.

GTAC has taken over the Development Bank of Southern Africa’s responsibility for producing the Development Southern Africa journal, which continues to enjoy a growing readership and strong academic recognition. Six issues were published during the year, including three special themed editions. The January 2015 issue was dedicated to South Africa’s emerging middle class.

GTAC also supported the employment, income distribution and inclusive growth research project, which is managed by the University of Cape Town’s Southern African Labour and Development Research Unit. This project was created in response to a request from the Minister of Finance for evidence, analysis and advice on public policy and public finance reforms to support accelerated employment creation, a more equitable distribution of income and inclusive growth.

The project’s www.econ3x3 site published 15 articles in 2014/15 and has seen a steady rise in readership.

GTAC helps to build public finance capacity through partnerships with a number of national and international centres of excellence. These arrangements bring mutual benefits, including knowledge and learning initiatives and project implementation support.

GTAC enters into a memorandum of understanding (MoU) with each partner institution, which establishes the strategic intent, objectives and terms of the partnership. A cooperation agreement

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gives effect to the partnership MoU and identifies specific activities or joint initiatives to be implemented through collaborative projects.

During the past year, GTAC has signed MoUs and cooperation agreements with the University of Cape Town’s Graduate School of Development Policy and Practice, the University of the Witwatersrand’s Public Affairs Research Unit and the National Education Collaboration Trust. GTAC has provided funding to the Graduate School of Development Policy and Practice to enable 14 government managers to enrol for an MPhil in Development Policy and Practice.

Table 1: Signed MoUs, 2014/15

Several presentations and seminar events were hosted during the year, including case studies of GTAC projects and broader reviews of development and public finance issues. Highlights included:

A presentation by Professor Brian Levy, academic director at the Graduate School of Development Policy and Practice, on Integrating Governance and Growth in Development Strategies.

A specialist two-day workshop to consolidate the Human Settlement and Public Transport expenditure reviews.

An interactive seminar on leadership and personal development by Dr Annie McKee from the University of Pennsylvania.

Partner Areas of collaboration University of Cape Town Graduate School of Development Policy and Practice

Executive short courses. Dialogue (seminars & workshops). Case studies. MPhil scholarship.

University of the Witwatersrand Public Affairs Research Unit & National Treasury’s Cities Support Programme

Longitudinal and comparative research on the drivers of institutional performance in the public sector.

Case studies that highlight a relevant institutional dynamic affecting performance.

Dialogues between relevant stakeholders appraising new research findings on governance challenges.

National Education Collaboration Trust & Department of Basic Education

Referral model and system for psychosocial support for learners and process case study.

Case studies on the district intervention programme and the management of the examination system in basic education.

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TRANSACTION ADVISORY SERVICES AND PUBLIC-PRIVATE PARTNERSHIPS

Unit Head: Tumisang Moleke

Building on the work of the former PPP Unit, GTAC provides specialised support for transactions governed by the Treasury Regulations on PPPs and advice on major infrastructure procurement transactions. Support typically extends beyond procurement into project implementation and contract management. The unit also hosts a quarterly PPP training programme and, on request, provides PPP training for foreign governments.

The unit monitors the performance of PPPs and provides implementation support to 18 active PPPs. The team also prepares draft policy documents for PPPs, related procurement issues and GTAC operations.

PPP procurements completed in 2014/15

Statistics South Africa office accommodation

The Statistics South Africa office accommodation project, initially registered with the PPP Unit in 2012, was financially closed during 2014/15. The project entails the design, building, financing, operation and maintenance of centralised office accommodation for Statistics South Africa, replacing the four buildings that previously housed the organisation’s 2 462 staff members.

The main building has a “drum and fingers” design, consisting of work stations, offices, meeting spaces, storage areas, staff areas, circulation and general spaces, a statistical training institute and an auditorium. The net present value of the total project cost, at the time of Treasury Approval III, was R2.5 billion.

Tshwane House

Tshwane House is the first municipal government accommodation PPP under the Municipal Finance Management Act (2003) and Municipal PPP Regulations. Following council approval in February 2015, the project was financially completed in March 2015.

The project is a 17-year contract (design, build, finance, operate and maintain) to deliver headquarters for the City of Tshwane, housing 1 589 municipal staff at a total project cost of R1.2 billion. It includes a 250-seated standalone council chamber with meeting rooms and communication booths, as well as 1 300 parking bays. The project is an integral part of Vision 55 and the regeneration of the inner city for the City of Tshwane.

Projects under assessment

Nelson Mandela Bay Municipality waste management

The Nelson Mandela Bay Municipality and Eskom have investigated the feasibility of a waste beneficiation and diversion project. The initial defects in the feasibility study have been rectified and

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the municipality’s project steering committee is determining the most appropriate technology for this project.

Northern Cape renal dialysis

The Northern Cape Department of Health registered its renal dialysis project in 2013. The only hospital in the province capable of providing renal dialysis is in Kimberley, which poses a serious problem for patients needing this service in other areas of the Northern Cape. The project seeks to provide renal dialysis facilities, either new or upgraded, in Kimberley, Upington, De Aar, Kuruman and either Springbok or Calvinia. A transaction advisory team has been appointed, the feasibility study has been completed and approved, and the department is waiting for the Provincial and National Treasury to approve the procurement documents. It is hoped that the procurement process will be completed by the end of 2016 or the beginning of 2017.

Gautrain extension

The success of the existing Gautrain rail network has prompted the initiation of a feasibility study to explore options for its extension. As with the initial PPP procurement, the Gautrain extension feasibility study will require extensive assessment of different routes, especially in light of recent population growth trends in the province.

Tshwane fleet services

The City of Tshwane is reviewing its fleet services provision to determine the most appropriate model for implementation. A transaction advisor conducted a feasibility study of the City of Tshwane’s fleet operations and recommended that the city adopt a centralised co-sourcing full maintenance lease model. Using this model, the city has undertaken a competitive tender process and submitted its final recommendations to the Tshwane Municipality, with input from the National Treasury, along with the proposed PPP agreement for consideration in terms of the Municipal PPP Regulations.

Gauteng Province: Kopanong Precinct

The Gauteng Department of Infrastructure Development registered the Kopanong project with the National Treasury in 2014 to procure suitable head office accommodation and consolidate the functions of the Gauteng Provincial Government within the Johannesburg central business district. The PPP project entails the refurbishment and upgrade of 19 buildings. There are two vacant stands where new construction may take place.

The project aims to improve service delivery through the consolidated structures, identify a mechanism for improving socioeconomic development, improve space functionality and the working environment to cater for growth in various provincial departments, and stimulate urban regeneration.

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A transaction advisory team has been appointed and a feasibility study completed, which the National Treasury and Gauteng Provincial Treasury are reviewing. If approved, procurement documents will be issued for the selection of a private-sector service provider.

Contract management and challenges in PPP procurement

The PPP Unit continues to support PPP contracts that are stable, financially sound and exhibit value for money. Several contracts are approaching expiration, and the unit’s monitoring and evaluation team is working with the institutions involved to ensure a seamless handover. The team achieved a significant PPP contract variation approval in the Universitas and Pelonomi joint-use hospitals PPP in February 2015.

The unit’s main challenge is the time needed to complete all the necessary work for PPP procurement, which often involves urgent and politically sensitive undertakings. Major time-consuming activities include procuring the sponsoring entity’s project officer and transaction advisor; accessing and interpreting all of the required information to construct the public-sector comparator in the feasibility study; procuring the private-sector service provider who will finance, design, construct and operate the desired infrastructure, which often includes protracted negotiations with a preferred bidder; and obtaining the necessary approvals from the sponsoring institution’s internal structures.

The PPP Unit strives to mitigate delays and explore mechanisms that will speed up the processes involved in meeting requirements, while ensuring that the PPP is still affordable, provides value for money, and transfers substantial and appropriate risk to the private party.

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Non-PPP transactions

PRASA rolling stock procurement

The PPP Unit continues to provide support to the PRASA rolling stock procurement programme. This involves:

Assisting with the tender processes to upgrade depots. Finalising the design of passenger carriages. Negotiating for leases of land. Reviewing the financial model for the industrial supplier park.

The National Solar Water Heater Programme and renewable energy projects

From 2009 to 2014, Eskom was the implementing agent of the National Solar Water Heater Programme. This responsibility has now been transferred to the Department of Energy, which is exploring options for a revised implementation model. GTAC will help the Department of Energy to:

Review the performance and status of Eskom deliverables, programme outputs and outcomes.

Finalise the relevant submissions to the National Treasury regarding budget rollovers and methodologies for applying the necessary rebates (capital or operational subsidies).

Develop and design the revised new framework and approach for rolling out the programme, which includes identifying relevant stakeholders and drafting and commenting on the agreements to be entered with such stakeholders.

Establish a management and support structure and process for the programme’s rollout. Finalise current private-sector requests for information. Manage funds (particularly donor funds) transferred to the Department of Energy and

disbursed to various service providers. Create monitoring and verification frameworks with clear audit trails. Create a reporting framework.

GTAC is also in consultation with the Department of Energy concerning off-grid energy possibilities. Interest in procuring projects for off-grid electricity generation has been expressed by Gauteng Province, uMhlathuze (Richards Bay), the East London Industrial Development Zone, Cacadu District Municipality and the Free State Department of Health.

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One-stop border post

The head of GTAC’s PPP Unit is the signatory on an African Development Bank-funded consultant contract with an international consulting joint venture. The joint venture has developed a draft one-stop border post policy under Cabinet’s direction. The draft will soon be finalised and presented to Cabinet. PPP Unit staff members have participated on the project steering committee for this initiative.

Free State Department of Health trigeneration project

The Free State Department of Health registered a project for the provision of energy services to its public hospitals in 2014. The department had previously issued a tender for such services for five public hospitals. During that period, it received an unsolicited bid to provide such services using trigeneration technology (combined cooling, heating and power generation) for the remaining public hospitals in the province. The terms of reference to be submitted to the PPP Unit’s panel of consultants are being prepared.

Table 2: Transaction support and PPP projects, 2014/15

New projects Department of Health Nelson Mandela Children’s Hospital.

Department of Public Works Government accommodation.

Department of Science and Technology

Appointment of transaction advisor for feasibility study – accommodation.

Gauteng Province Infrastructure development – rooftop solar PV green programme.

Gauteng Province Cogeneration/trigeneration plant project.

Western Cape Top yard multiple use project – feasibility study submitted.

Northern Cape Department of Cooperative Governance, Human Settlements and Traditional Affairs office accommodation in Kimberley.

Capricorn District Municipality Office accommodation.

Nelson Mandela Bay Municipality

Waste beneficiation and waste-to-energy project.

Department of Transport Office accommodation – Aviation Authority.

Free State Department of Health trigeneration

Off-grid energy provision for provincial hospitals.

Policy development and training initiatives One-stop border post Support for the National Treasury/African Development Bank initiative,

mandated by Cabinet, to develop a draft one-stop border post policy for its consideration.

Special economic zone regulations

Participate as a member of the Department of Trade and Industry/National Treasury team that is finalising the pending special economic zone regulations.

PPP training Coordinate the provision of PPP training for visiting foreign delegations and provide PPP training in African countries. Training was provided to a visiting delegation from Zimbabwe in December 2014 in Windhoek, Namibia, and Abuja, Nigeria, in November/December 2014. On 30 April 2015, the unit provided PPP training to a visiting delegation from Cameroon.

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INFRASTRUCTURE AND CAPITAL PROJECTS APPRAISAL

Unit Head: Nicky Prins

The National Capital Projects Unit was formed to provide specialised analytical support to the National Treasury. The unit assesses large infrastructure investments, including reviewing the plans and supporting documentation of megaprojects to advise on their likely economic and financial viability, particularly where financial support of one form or another is being requested of the National Treasury. The unit also analyses the impact of infrastructure investments on the financial sustainability of public utilities, financial cost comparisons of investment programme options and potential funding strategies for infrastructure projects and programmes.

Assessing E skom’s support options

During 2014/15, the National Capital Projects Unit helped develop a support package for Eskom in the wake of the funding challenges associated with its investment programme and efforts to meet electricity demand. This work comprised much of the unit’s economic and financial analysis undertaken during the year.

The National Capital Projects Unit worked closely with the National Treasury’s Assets and Liabilities Management Division to assess Eskom’s situation, explore different solutions and package a set of proposals on behalf of an interdepartmental task team. The unit assisted policy-makers in their review of the proposals and provided additional analysis at their request. The process culminated in the proposal of a particular solution, and Cabinet adopted this support package in September 2014.

Following the package’s adoption, the unit continued to support the Assets and Liabilities Management Division and the task team in overseeing the implementation of its various solutions and tracking developments in Eskom’s financial sustainability. The unit continued to provide analytical support to the task team as its focus shifted to longer-term issues in the energy sector.

When the Eskom War Room was established in late 2014, the National Capital Projects Unit, as part of the National Treasury, was again asked to provide assistance, using its extensive knowledge of the electricity industry and its economic and financial assessment skills. The focus expanded beyond Eskom’s medium-term financial sustainability to include short-term challenges, as well as immediate and medium-term electricity supply concerns.

South Africa’s energy security rests on resolving these issues and the unit is expected to continue providing support to the task team for the foreseeable future.

Other infrastructure analysis projects

During 2014/15, the National Capital Projects Unit reviewed the Grand Inga Hydroelectric Project to highlight the likely costs, benefits and risks for the National Treasury, which is a member of the South African government team engaging with the Democratic Republic of Congo.

The unit also continued its analysis of the potential for using gas-fired power stations on a large scale in South Africa, the case for rolling out photovoltaic (PV) solar energy on rooftops for commercial and residential use, and the competitiveness of independent power producers.

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Having built up considerable expertise in energy infrastructure analysis, the unit was able to respond to many smaller requests for insights and assistance from National Treasury units dealing with energy-related issues. This includes the liquid fuels sector, where analysis was provided on PetroSA’s proposed investment in the retail fuel sector, as well as an update of a previous report on the sector.

The unit also developed its capabilities to analyse rail transport infrastructure. With a number of passenger and freight rail projects at different stages under consideration, this will be an important focus area over the coming years. The unit contributed to the analysis of the Moloto Corridor rail feasibility study and gained early insights on the methodology for assessing the case for a Gautrain extension.

One of the unit’s main challenges has been managing the increased demand for infrastructure investment analysis as it has built its expertise and proficiency in this area, while still having a relatively small staff complement. Increasing the unit’s staff complement is under consideration to build the unit’s capacity to respond to requests for advice and expand analytical capacity in other infrastructure sectors.

Private-sector financing of infrastructure

The National Capital Projects Unit is responsible for convening a task team on private-sector infrastructure financing on behalf of the National Treasury, which involves various government departments and representatives from finance industry and labour organisations.

Following diagnostic research done in 2013/14 to understand possible constraints to the industry investing more in public infrastructure, in 2014/15 the unit produced a study on its findings, an action plan for government to address these issues and more in-depth work on selected areas. In addition, the unit conducted a series of interviews with industry representatives to assess progress made during the task team’s existence. The task team continued to facilitate engagements between the industry and government, focusing mainly on opportunities in the energy sector. Assistance with additional sectors, such as transport and water, is envisaged in future, although energy investment is likely to remain an important focus area.

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Table 3: National Capital Projects Unit activities, 2014/15

TECHNICAL ADVISORY SERVICES

Acting Head: Emmanuelle Gille

Advisory and technical support: approach and priorities

GTAC’s advisory and technical support activities are organised into four project portfolios:

Social services Governance and administration Economic development Infrastructure and rural development.

These projects help build capacity in client departments, both through the support provided and direct capacity-building sessions.

New projects Assessment of Moloto feasibility study

Assess the feasibility study on the Moloto Corridor rail project.

Rooftop PV distributed generation

Assess the potential of residential and commercial rooftop solar PV panels to provide an economically viable energy-generation solution.

Ongoing projects Assistance to National Treasury on Eskom’s financial sustainability

Analytical support and additional capacity to National Treasury to analyse Eskom’s financial sustainability issues.

Feasibility of gas-fired power stations using imported gas

Assess the impact of pricing on the potential of gas-fired power stations to provide an economically viable electricity generation solution, using imported gas.

Financial cost modelling of large projects

Apply financial cost modelling techniques to understand the comparative total and unit costs of a range of large projects.

Task team on private-sector funding of infrastructure

Facilitate interactions between representatives of government, business and labour on aspects of the infrastructure financing environment to be addressed in order to attract greater private-sector investment in public infrastructure projects.

Liquid fuels industry study

Update an earlier assessment of the feasibility of large investments in the liquid fuels industry.

Completed projects Assessment of pre-feasibility study of Grand Inga Hydroelectrical Project.

Assessment of economic feasibility of gas-fired power stations using local gas.

Assessment of economic competitiveness of independent power producers.

Assistance to National Treasury in assessing the feasibility of PetroSA’s proposed investment in the retail fuel industry. Policy development and training initiatives Study on measuring rail transport externalities

Prepare the unit for likely future rail project feasibility studies that will need to be assessed on behalf of the National Treasury.

Study on passenger rail evaluation methodology

Prepare the unit to evaluate the expected Gautrain extension feasibility study that will be submitted to the National Treasury on completion.

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Technical assistance and management support services are offered to departments and other organs of state across government. Support includes programme and project management, organisational development, strategic planning and performance management.

Programme and project management support is focused on three areas: people, processes, and tools and technology. The unit aims to facilitate the implementation of high-priority programmes and projects, and improve government’s capability to deliver. It provides guidance on project planning, helps set up project management offices, conducts project management health checks and expands government’s project management community of practice.

Organisational development support builds clients’ capacity to improve their effectiveness and performance. It takes into account the various key functional areas of strategic management, human resources management, financial management, supply chain management and operations management.

GTAC uses a results-based management approach to its strategic planning and performance budgeting support, which offers departments a valuable performance information management tool. Results-based management shifts the focus in planning, monitoring and reporting on activities and outputs to include expected outcomes or results. This is based on the understanding that it is not only government’s activities that should be monitored and measured, but also the results that it achieves. GTAC helps clients construct visual models to illustrate the links between their actions and the intended results.

Departments tend to focus on compliance in the strategic planning process rather than viewing the process, plans and in-year reporting as opportunities to improve programme performance. In addition, many departmental planning sections struggle to get operational units to meaningfully participate in planning and reporting processes.

GTAC offers not only a thorough understanding of government frameworks and the ability to draw on the experience of other government departments, but also an understanding of teams and the ability to encourage teams to work together.

Performance management support entails providing assistance for the development of performance management frameworks and various monitoring and reporting processes. This area of support to clients focuses on the value of the results-based management approach and thinking.

An important element of GTAC’s support is the diagnostic study, which is undertaken during the engagement phase of a project. It assesses the client’s practical needs and challenges, makes recommendations and informs the design of an appropriate support programme or intervention. These diagnostic studies are a joint effort between the client and GTAC, and provide an opportunity for mutual learning and capacity building. GTAC peer reviews its diagnostic studies to enhance learning and identify areas for improvement.

GTAC supported 80 projects during the year, which were at various stages of implementation at the end of 2014/15. A list of these projects is provided in the table at the end of this section. Some of the projects that GTAC supported during the year are highlighted below.

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Eastern Cape Department of Education: improving supply chain management

GTAC provided support to the Eastern Cape Department of Education to improve its supply chain management performance, including human resources management. There are a number of factors that contribute to poor learning outcomes, including poor curriculum support and weak administrative and financial systems (human resources, supply chain management, financial management) across the education delivery system, from the head office to schools. This is often compounded by a problematic organisational culture that hinders effective service delivery.

This project has provided an opportunity for GTAC to develop and test an integrated and holistic conceptual model to build capacity. The model was developed through a number of engagements within GTAC, as well as with partners from the School of Governance at the University of Ottawa in Canada.

GTAC worked at all levels of the provincial education system and, as a result, the Eastern Cape Department of Education has refined its supply chain management policies, developed standard operating procedures and introduced improved supply chain management business processes. It has also developed policies, procedures and business processes for schools’ management of the National School Nutrition Programme.

Improvement is evident in eight schools in the Grahamstown district where, following GTAC’s assistance, learners are now benefiting from the nutrition programme during breaks without any disruption to the curriculum. The schools’ senior management teams are now fully functional and relations between supply chain management and the Grahamstown district offices have improved, as have the turnaround times for the procurement of goods and services.

Border Management Agency feasibility study

The success of interdepartmental programmes depends on joint prioritisation, planning, budgeting and implementation within a system of independently structured departmental mandates, accountabilities and funding. GTAC has assisted in a number of such areas, most notably in the border control environment, which requires a balance between the competing needs of trade facilitation and free travel on the one hand, and crime prevention, security, trade protection and sovereignty on the other. This is made all the more complex due to the number of government agencies involved: there are 21 departments and agencies responsible for setting policies, performing border controls or both.

During 2014/15, GTAC helped develop a status quo analysis on border functions, challenges and international comparisons, with a focus on ports of entry functions and operations. This analysis clarified the nature of a border management agency as an implementing agent for many parent departments that set policies relating to the cross-border movement of people and goods. South Africa does not have similar agencies or organs of state from which accountability and governance arrangements can be borrowed. Suitable enabling legislation is being drafted for the envisaged Border Management Agency to satisfy the constraints and principles identified in the institutional options analysis. Work is also continuing with a detailed status quo analysis of border line control and protection functions and operations.

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Thusong service centres business case

GTAC also supported the development of a business case for the Thusong service centre programme. The one-stop service centres provide integrated information and services to communities, particularly in rural areas. The centres provide government social and administrative services, office services, education and skills development services, local economic development services, business services and community opportunities, and information and communication activities.

There have been varying degrees of success to date across the 183 centres. The business case used these successes to further clarify intergovernmental roles and responsibilities. One of the main challenges is the programme’s overall ownership. Many of the services delivered though the Thusong service centres are the responsibility of individual national departments, but most centres are owned and/or operated by municipalities. A follow-on project to recommend a formalised funding model for these centres is now being undertaken.

Broadband policy, planning and implementation

During the reporting period, GTAC helped the Department of Telecommunications and Postal Services implement its broadband policy, South Africa Connect. The centre focused on developing competence in programme and project management, and helping the department plan the first phase of the policy’s rollout, due to start in 2015/16.

A team has been put in place to support the implementation of this first phase while planning for subsequent phases continues. GTAC has already improved the department’s ability to manage planning. In 2015/16, the centre may also provide implementation support for digital development.

GTAC’s support included a review of the telecommunications sector’s market structure. Independent experts conducted a market structure study, which provided a detailed analysis of the current market. The study recommended interventions to improve the functioning of the market, efficiently leverage industry capabilities and ensure better returns on public-sector spending.

Oceans management and economic potential

GTAC provided technical support to the Department of Environmental Affairs for the development of a draft policy on the oceans economy, which aims to unlock the economic potential of neighbouring oceans.

While the Department of Environmental Affairs is the custodian of the management and conservation of the oceans, there are many stakeholders who have legislative jurisdiction over certain ocean activities. GTAC supported a detailed stakeholder analysis at the start of the project to identify the interests of the different stakeholders and understand the legislation that governs their actions. As a result, the policy was drafted taking due cognisance of all the existing legislative mandates.

Through the technical support provided, the Department of Environmental Affairs published the White Paper on National Environmental Management of the Ocean. Cabinet approved the white

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paper, which draws on international best practice and a solid understanding of the domestic legislative environment, and sets out a coordinated sectoral management approach to ocean environmental management. This will allow South Africa to address the growing challenges posed by the effects that humans have on the ocean environment more effectively, while maximising the economic development potential that the ocean presents.

Economies of Regions Learning Network

The Economies of Regions Learning Network is an important GTAC initiative. This learning network brings together economic development practitioners across government to strengthen their agency as leaders in the regional economic development arena. It was established in 2012 to actively support innovation and the effective implementation of regional economic development programmes through institutional transformation. The Economies of Regions Learning Network aims to build organisations’ capacity to implement and support regional economic development initiatives by sharing ideas and approaches. The core members are public-sector policy-makers and practitioners from key provinces and cities in South Africa. Associate members include practitioners from academia, the private sector and non-profit organisations.

Diagnostic studies and reviews

The diagnostic study provides the foundation for successful engagement. It provides an accurate assessment of the real needs and/or challenges, as opposed to perceived needs, of the client. GTAC uses the diagnostic report to make recommendations and design the support required by the client in such a way that directly addresses the agreed needs of the client. These diagnostic studies are a joint effort between the client and GTAC, and are an opportunity for mutual learning and some form of capacity building for the client.

Department of Human Settlements

At the request of the Department of Human Settlements, GTAC reviewed the Technical Capacity Development Chief Directorate’s operations to identify ways to align it with the department’s mandate.

The review contextualised the work of the chief directorate within the human settlements policy and legislative environment, defined the human settlements delivery chain, identified emerging issues and made suggestions for the department’s consideration. Although all project outputs were delivered as planned, the envisaged outcome has not been achieved largely due to the client’s lack of follow-up on the issues identified.

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Eastern Cape Department of Economic Development, Environmental Affairs and Tourism

As part of GTAC’s support for the Eastern Cape Provincial Department of Economic Development’s planning for the Strategic Integrated Project (SIP) 3 (South-eastern Node and Corridor Development), the centre undertook a diagnostic study to better understand the economic development challenges facing the Wild Coast and determine the support GTAC could offer.

As part of GTAC’s study, it focused on developing a strategy to help people in the field deal with issues in the Eastern Cape Wild Coast integrated development plan. The diagnostic report provides a detailed account of the Wild Coast’s regional development conditions and economic development prospects. Following the conclusion of the diagnostic study, GTAC is developing a programme map and monitoring framework for the department.

Department of Planning, Monitoring and Evaluation

GTAC conducted a detailed diagnostic study of mining communities and labour-sending areas to inform the planning, coordination and budgeting processes needed to revitalise distressed mining communities. The project aims to help government develop a clear, prioritised action plan and to effectively implement the revitalisation of distressed mining communities project.

Given the nature and scope of this project, the project team tested the diagnostic tool and analytical framework in Westonaria Local Municipality, a mining town selected due to its availability of data and the Gauteng Planning Commission’s extensive work conducted in this area. The draft diagnostics of the 26 mining towns and labour-sending areas have been completed, and the project team is engaged in regional workshops with municipal and provincial stakeholders to test the draft diagnostics, review data and fill information gaps.

An important component of the project has been the ongoing interaction with the Department of Planning, Monitoring and Evaluation. During these engagements, the project has helped develop project management capability, provided insight into the diagnostic process (especially regional economic analysis) and supported effective intergovernmental information sharing on specific regional interventions.

Western Cape Department of Economic Development and Tourism

The Transnet National Ports Authority gave the Royal Cape Yacht Club notice of the non-renewal of its lease, which expires in December 2023. The Western Cape Economic Development and Tourism Department requested support to conduct a comprehensive analysis of the current and future effect the Royal Cape Yacht Club has on the City of Cape Town.

This was a small, focused study conducted to inform the relocation of the yacht club, including an analysis of the related requirements, constraints, benefits and costs. The study identified a number of possible locations and an in-principle decision was made to relocate the yacht club to the V&A Marina. It is expected that the Royal Cape Yacht Club will be relocated in a timely manner with positive economic effects for the City of Cape Town and the Western Cape.

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This project aimed to develop high-level concept design options for the Gateway precinct in the Cape Town Port precinct. It included a status quo investigation with a baseline assessment of key infrastructure, a review of planning policy directives, a synthesis of constraints and opportunities, and the development of a conceptual framework.

The project’s collaborative approach to developing ideas and concepts enabled structured engagement and the co-design of options. GTAC’s role as a neutral but interested party played an important role in bringing together a variety of role-players to agree on a shared spatial vision for the foreshore area. The conceptual development framework presented a vision for the area with which all role-players felt comfortable.


The Western Cape Government has linked its development and supply of skills to the anticipated demand for skills arising from the province’s economic priorities, infrastructure plans and ongoing investments. These planned infrastructure developments and the need for maintenance will affect the skills supply and demand in the Western Cape, and as a result, are quite significant for the Western Cape Government Provincial Skills Forum’s programmes and projects.

GTAC provided technical support to the Provincial Skills Forum to develop an objective and evidence-based assessment of the scope for the Western Cape Government’s interventions to match the demand for infrastructure maintenance skills with the supply of artisanal skills provided by public and private further education and training (FET) colleges, now known as technical vocational education and training colleges, in the Western Cape.

GTAC conducted a government infrastructure maintenance skills pilot study, which analysed challenges in government infrastructure maintenance and how these relate to the development and placement of qualified artisans in the broader public sector. The centre also reviewed the skills demand in the electricity, water and sanitation, solid waste, and roads departments of three municipalities (the City of Cape Town, Saldanha Bay Local Municipality and Theewaterskloof Local Municipality), two provincial departments (the Department of Transport and Public Works, and the Department of Health), and one state-owned company (Transnet).

This research provides a platform to discuss infrastructure and skills development. Insights can help develop a strategy with profound implications for economic development.

Eastern Cape Department of Provincial Planning and Treasury

GTAC is helping the Eastern Cape Provincial Treasury review the province’s public entities and their subsidiaries. This project is being executed in phases, with the first phase focusing on providing a holistic overview of all the public entities and their subsidiaries to identify their mandates, functions, key activities and funding streams. Once this is completed, GTAC will complete a more detailed review of the individual entities to identify possible overlaps, gaps and opportunities in the context of existing national and provincial strategic priorities.

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Strategic planning and performance budgeting

GTAC provides strategic planning and performance budgeting support using a results-based management approach. It helps clients construct visual models to illustrate the links between their actions and their intended results.

Quality Council for Trades and Occupations

GTAC helped the Quality Council for Trades and Occupations revise and finalise its strategic plan for 2012/13 to 2016/17, and prepare its annual performance plan for 2014/15. The centre also helped the council’s staff prepare operational plans. GTAC held a series of planning workshops with council staff, as well as a strategic planning workshop.

During this process, the Quality Council for Trades and Occupations gained a better understanding of the strategic and annual performance planning framework, and the alignment of planning requirements. The council has since put a schedule and process in place to ensure that all the planning components meet its submission deadlines.

National Heritage Council

The National Heritage Council requested support for the review of its medium-term strategic framework and annual performance plans. GTAC analysed and discussed the strategic plans with the council before holding planning workshops. This helped the management teams develop outputs, targets and indicators to address the weaknesses identified in previous strategic plans.

Ditsong Museums

GTAC helped Ditsong Museums of South Africa develop its strategic and annual performance plans for 2015/16 to reflect its new vision of decentralising decision-making authority to various museums. GTAC assessed the previous strategic plan, developed a results matrix, held capacity-building sessions with management staff and facilitated strategic planning workshops.


The Department of Planning, Monitoring and Evaluation is responsible for government’s strategic plans and annual performance plans. This function was previously managed by the National Treasury, which has agreed to work with the department on a more integrated planning system and framework. GTAC is helping the Department of Planning, Monitoring and Evaluation build its knowledge and capability to effectively manage this new function.

Facilitation

GTAC provides facilitation support for once-off, short interventions at the request of the client. The support typically entails engaging with the client to understand its needs and develop a workshop programme, providing advice on the strategic planning framework developed by the National Treasury, facilitating the workshop and drafting the workshop report.

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This support was provided to the following clients:

KwaZulu-Natal Office of the Premier. East London Industrial Development Zone. National Treasury, Cooperative Banks Development Agency. National Treasury, Chief Directorate: Economic Services. National Treasury, Public Finance.

GTAC also provided team coaching and leadership development to units within and outside the National Treasury. Feedback from this support has been positive and there have been an increasing number of requests of this nature.

Department of Planning, Monitoring and Evaluation: Operation Phakisa Health Lab

Operation Phakisa, in its adapted form, is an initiative designed to fast-track the implementation of solutions for critical development issues highlighted in the National Development Plan.

The Department of Planning, Monitoring and Evaluation invited GTAC to participate in the Operation Phakisa Health Lab for Ideal Clinic Realisation and Maintenance. A team of five GTAC representatives attended the training course offered by McKinsey, a consulting firm, before the start of the lab. The lab was supported by a combined team from the Department of Health; the Department of Planning, Monitoring and Evaluation; the Malaysian Performance Management Delivery Unit; McKinsey and GTAC over a period of six weeks.

GTAC facilitated the deliverables of various work streams and provided coaching to help lab leaders present to the directors-general, Minister and President. Further discussions are being held with the Department of Planning, Monitoring and Evaluation to reflect on this experience and discuss GTAC’s support for forthcoming labs.

Organisational development

GTAC’s organisational development support focuses on building the capacity of client organisations in a holistic manner to improve performance.

GTAC has developed five specific areas of work to complement its organisational development: Gestalt organisational and systems development; meta-coaching (neurolinguistic programming and neurosemantics); change management; leadership development; and strategic management.

South African National Biodiversity Institute

GTAC has provided support to the South African National Biodiversity Institute (SANBI) since 2010. SANBI was established by combining two institutions under the National Biodiversity Institute to form a new public entity. This transition presented a number of organisational management problems. Some of the problems experienced included the lack of a common understanding of the goals of the transformation objectives within SANBI; management of the expectations of staff and stakeholders of the transition given the expansion of the mandate; diverse constituencies, cultures

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and backgrounds, areas of work and skills levels; and aligning projects to the government mandate and strategic planning guidelines.

GTAC acted as an independent facilitator, guiding the transitional process and ensuring ownership of SANBI’s new integrated vision. It conducted a comprehensive diagnostic study of the organisation, which informed the individual and group coaching programme.

The SANBI chief executive officer reported that GTAC’s assistance was vital to the success of its transformation initiative, and that the leadership training and coaching was invaluable in fostering change in the organisation.

Eastern Cape Office of the Premier

The Eastern Cape Provincial Government, under the leadership of the Office of the Premier, initiated a system-wide culture change programme in 2011. GTAC and its predecessor, the Technical Assistance Unit, have been assisting the Eastern Cape Office of the Premier in designing and implementing its provincial culture change programme over the last three years.

The project focused on capacitating a group of change agents from the Eastern Cape through a series of workshops and action learning sessions, supported by an expert team consisting of local and international advisors. GTAC trained about 200 change agents, completed a diagnostic report and helped the different departments design and implement interventions focusing on the themes that emerged from the diagnostic report. GTAC also held sessions with the province’s political and administrative leaders focusing on their role in leading the culture change programme.

The provincial culture change programme has taken root in the province, with capacitated and energised officials in place and some encouraging results. In the process, GTAC learnt that culture change support could be more usefully integrated into its broader strategic and technical support.

Department of Higher Education and Training

GTAC provided assistance to the Department of Higher Education and Training to shift the administration of the functions for FET colleges and adult education and training from provincial education departments to the national Department of Higher Education and Training. GTAC’s support improved the capacity of the Department of Higher Education and Training to manage and implement the function shift.

When the project ended in June 2014, some progress had been made, but challenges hindered the function shift’s completion. GTAC’s technical assistant in the department was subsequently contracted directly by the Department of Higher Education and Training to continue with the support. Through this support, the function shift has progressed significantly. The budget has been shifted and 25 532 out of a possible 33 820 posts have been loaded onto the department’s system.

Transport Education and Training Authority

The Transport Education and Training Authority was established in terms of the Skills Development Act (1998) to facilitate the development, registration and implementation of learnerships, skills

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programmes and strategic initiatives, and the approval of workplace skills plans. In 2010, the Transport Education and Training Authority initiated a process of organisational development that sought to align its structure and culture to the organisational strategy, and improve its human resources policies, procedures and systems.

GTAC reviewed and strengthened the organisation’s strategy and change management implementation. It developed an organisational structure aligned to the strategy and held coaching sessions for the Transport Education and Training Authority’s managers and their teams. The sessions provided an opportunity for teams to present and resolve their organisational development problems.

National Arts Council

The National Arts Council asked GTAC to help it conduct an organisational review to improve its performance and resources, and ensure efficient placement and prioritisation of work roles that link to the strategic plan.

The project entailed re-crafting the National Arts Council’s strategy, reviewing governance structures and providing general human resources and organisational development support to the chief executive officer. To improve the organisational processes, GTAC helped design and implement a new core business process, resulting in more efficient and effective ways of working.

The new organisational design was well received and provided important capabilities to support the council’s strategy. The strategy has also been well implemented and milestones have been consistently achieved.

Department of International Relations and Cooperation

The Department of International Relations and Cooperation asked GTAC to help it establish and operationalise the South African Development Partnership Agency.

Although GTAC established a project management office to support the department and South African Development Partnership Agency project counterparts, the agency did not become operational because GTAC’s support to the client was terminated before completion. This was due to the project being deprioritised within the Department of International Relations and Cooperation.

Department of Public Works

GTAC provided support for the national Department of Public Works’ turnaround initiative from November 2011 to December 2014. In the first phase of the project, GTAC reviewed the departmental situation and made recommendations to the Minister of Public Works on ways to help stabilise the department. The centre also helped the department identify, design and rationalise its turnaround projects; improve its supply chain management processes; and design and launch a model to improve service delivery.

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The Department of Planning, Monitoring and Evaluation aims to improve service delivery in government through an operations management and support programme.

During the first phase of the operations support programme, GTAC helped the department develop a conceptual understanding of operations management in the public service and explore possible approaches to providing support to departments.

During a more detailed analysis of the needs of potential pilot departments and sites, GTAC and the department developed case studies on the operations improvement experiences of the Department of Home Affairs (ID Turnaround Project), the Department of Justice and Constitutional Development (Maintenance Turnaround Lean Project) and the Gauteng Department of Roads and Transport (Best Practice Model for Vehicle Registration and Licensing).

GTAC also produced a study on lessons learnt from existing operational improvement initiatives and a needs analysis. The report sheds light on the characteristics of some well-known operations improvement models. During the next stage of support, GTAC will help the Department of Planning, Monitoring and Evaluation design the operations management support programme based on the study’s recommendations.

National Treasury, Public Finance

GTAC provided support to the National Treasury to develop an operational framework for the management of 12 proclaimed fishing harbours. The desired outcome of the project was an effective intergovernmental mechanism with an associated set of procedures and processes to enable the coordinated and cooperative management of the fishing harbours.

GTAC produced a report with a balanced view of the future management of the harbours and clearly articulated roles of the different spheres involved. GTAC presented this document at a workshop, which brought together all government role-players in a joint session. During the workshop, the officials from all spheres of government largely agreed on who should be responsible for the various functions.

Safety and Security Services Sector Education and Training Authority

The Safety and Security Services Sector Education and Training Authority is responsible for skills development and implementation within the safety and security sector. It has been beset by problems of poor management and controls, particularly in the areas of supply chain and financial management. The authority decided to institute a turnaround process and asked GTAC to help implement its turnaround strategy.

During 2014/15, GTAC helped the Safety and Security Services Sector Education and Training Authority improve its capabilities to manage the supply chain and discretionary grant projects. This included improving supply chain management, improving the management of performance information, supporting the implementation of an improved human resources performance

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management system and implementing a culture-change programme through leadership and team coaching. This support is ongoing.

Eastern Cape Department of Sports, Recreation, Arts and Culture

The Eastern Cape Department of Sports, Recreation, Arts and Culture asked GTAC to help it address challenges related to its operations and service delivery. GTAC conducted an organisational review to improve the department’s delivery against its mandate.

GTAC produced an innovative service delivery model and structure, as well as a functional structure aligned to the department’s strategy and mandate. The main challenge now is to ensure that this structure receives the required financial support from the Provincial Treasury to enable implementation.

National Treasury, Office of the Chief Procurement Officer

The National Treasury established the Office of the Chief Procurement Officer to modernise and clean up supply chain management in government. The institutionalisation of this office is critical.

GTAC conducted a rapid review of the Office of the Chief Procurement Officer and recommended that support be provided to establish the office’s expanded function, clarify its vision and strategic agenda, and reaffirm the existing team.

GTAC helped the office develop its strategy and the organisation itself through team-building activities, functional analysis and human resources modelling.

Neighbourhood Development Programme

The Neighbourhood Development Programme’s Urban Network Strategy is an important focus area, providing direction for spatial targeting and large spatial interventions in South Africa’s cities. GTAC was asked to conduct research on the urban network strategy.

This support is ongoing. GTAC is conducting research to deepen the strategy, drawing on insights form stakeholders focused on the urban spatial and economic debate in South Africa. GTAC will produce high-quality toolkits and guidelines that will be made accessible to municipalities.

Office of Health Standards Compliance

GTAC has provided support to the Office of Health Standards Compliance since 2010, initially developing a business case and later establishing the office as a fully functional organisation. GTAC helped ensure that this new public entity was established and capacitated to implement robust policies, procedures and systems in pursuit of protecting and promoting the health and safety of South Africans.

This support included organisational development and human resources management support, financial management support, change management and coaching, and strategic planning support.

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Given the limited capacity of the newly created public entity, GTAC’s technical and advisory support played a valuable role during the office’s establishment. The Office of Health Standards Compliance is starting to develop its own capacity and expertise with much less dependency on external support as GTAC’s support comes to an end.

Department of Science and Technology

GTAC provides technical support to the Department of Science and Technology to support the establishment of the Astronomy Management Authority and the National Indigenous Knowledge Systems Office as special service delivery units.

The department established the Astronomy Management Authority as an internal directorate to ensure that all the regulations of the Astronomy Geographic Advantage Act (2007) are adhered to. However, given the regulatory oversight responsibility of the Astronomy Management Authority, it should ideally be located at arm’s length from the department. GTAC is helping to develop a business case that will assess the authority’s appropriate institutional form.

GTAC is also helping the Department of Science and Technology develop a business case on the appropriate institutional form for the National Indigenous Knowledge Systems Office. The department intends to establish the office as a special service-delivery unit to separate its regulatory and implementation activities from the department’s strategic functions. The viability of such a unit will be tested against a range of other options during the feasibility study.

National Treasury, Intergovernmental Relations: Cities Support Programme

The National Treasury’s Intergovernmental Relations Division is responsible for coordinating the Cities Support Programme, which is designed to assist metropolitan municipalities. It operates across five component areas in eight metropolitan municipalities using a results-based approach.

The programme provides targeted technical assistance to cities, coordinating this with fiscal incentives and a complementary programme of regulatory reforms.

GTAC provides technical support to the Cities Support Programme in selected cities to strengthen their leadership capabilities and teams to enable them to more rapidly and effectively address their identified strategic development challenges.

During 2014/15, GTAC supported the Nelson Mandela Bay Metropolitan Municipality. It piloted a variety of approaches and tools, including scenario planning, and helped develop the municipality’s understanding of the broader historical, economic, political and social factors that have contributed to the city’s current dynamics.

Programme and project management support

Programme and project management support is focused on people, processes, tools and technology. GTAC facilitates the implementation of priority programmes and projects, and improves government’s capability to deliver. This support includes providing guidance and advice for project

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planning, helping to set up project management offices, conducting project management health checks and expanding government’s project management community of practice.


In addition to the technical support to the Cities Support Programme discussed previously, GTAC also helped the programme with a subnational “doing business” study in South Africa’s nine largest cities (the eight metropolitan municipalities and the Msunduzi Municipality) during 2014/15. The study is a city-level variation of the World Bank’s annual Doing Business report.

The purpose of the study is to establish incentives to improve government performance. GTAC has provided technical management support to oversee and coordinate project activities and ensure that the findings of the study are institutionalised. It has also provided intergovernmental stakeholder support to the International Finance Corporation/World Bank team and facilitated peer-to-peer learning through the Economies of Regions Learning Network and related forums.


A review of the Cities Support Programme’s results framework and implementation readiness highlighted the need for additional specialist capacity to provide monitoring and evaluation support.

GTAC was asked to support the Cities Support Programme manager to develop and implement a monitoring, reporting and evaluation system. The support includes developing and defining the monitoring and reporting framework, developing a monitoring and reporting system, defining and developing the evaluation framework and system, and helping to prepare quarterly and annual evaluation reports. This support is ongoing.

National Treasury, Intergovernmental Relations: Provincial and Local Government Infrastructure Chief Directorate

GTAC and its predecessor the Technical Assistance Unit have supported the Infrastructure Delivery Improvement Programme since 2010. The project consisted of the following six outputs:

Supporting the programme management unit. Mobilising, procuring and demobilising technical assistants. Managing contracts (financial and administration). Managing regional (provincial/sector department) programmes. Providing technical advice to the programme management unit. Developing skills.

In 2014/15, GTAC focused on the technical closure of the programme’s last phase, including a careful handover of several important functions to the client. This brought to a close four years of intense support on this large project. GTAC and the client held a handover workshop to reflect on lessons learnt and what work could be done in partnership with GTAC in the future.

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Department of Arts and Culture

The Department of Arts and Culture requested organisational development support to enable the Infrastructure Development directorate to improve its service delivery. This directorate is responsible for implementing capital projects.

GTAC produced a diagnostic report with high-level recommendations for improving the management of facilities and budgets. Technical advisors were appointed to finalise the directorate’s strategy and develop systems and policies for its effective management. GTAC also developed an organisational structure and job profiles for the relevant positions.

Financial Intelligence Centre

GTAC and its predecessor the Technical Assistance Unit have provided support to the Financial Intelligence Centre since 2005 at various stages of its communications and information technology system’s development. This included establishing a programme management office and defining, planning and supporting the management of the Sekunjalo modernisation programme.

GTAC has helped the Financial Intelligence Centre plan and implement its modernisation programme through programme management support, technical support and advisory services. This assistance has provided the client with much needed capacity to execute this important and complex project.

Performance management

The performance management area of support entails providing assistance for the development of performance management frameworks and various monitoring and reporting processes.

Safety and Security Sector Education and Training Authority

In addition to the support discussed previously, GTAC provided technical assistance to the Safety and Security Sector Education and Training Authority to improve its capacity to monitor and evaluate projects funded by discretionary grants.

GTAC developed a monitoring and evaluation framework for the grant management system. In the first phase of this work, the centre conducted a diagnostic study of the existing monitoring and reporting systems and selected projects funded through the discretionary grant. This was followed by the development of a framework and evaluation system. GTAC held a capacity-building workshop with the project management office to implement the approved framework. GTAC has recommended that the Safety and Security Sector Education and Training Authority continue to focus on developing its capacity.

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In response to service-delivery challenges in departments with concurrent functions, the Forum of South African Directors-General management committee asked the Director-General of the Department of Planning, Monitoring and Evaluation to convene the relevant national departments to ensure that minimum norms and standards for service delivery are in place, and monitored and reported on adequately.

The following departments were identified to participate in the project: Agriculture, Forestry and Fisheries (agriculture, animal control and diseases); Cooperative Governance (disaster management, building regulations, firefighting services, storm-water management systems); Basic Education (education); Environmental Affairs (environment, nature conservation, pollution control, soil conservation, air pollution); Health (health service, municipal health services); Human Settlements (housing); Social Development (welfare services, childcare facilities); Energy (electricity and gas reticulation); and Water Affairs (water and sanitation services limited to potable water supply systems and domestic waste-water and sewage disposal systems).

GTAC provided technical advice and support to the Department of Planning, Monitoring and Evaluation, and assisted with the overall management of the norms and standards project. The project was conducted in stages, the first of which entailed an audit of the current minimum national norms and standards in the selected departments. GTAC produced a status quo report based on this audit.

In the next stage, a set of minimum norms and standards for the departments was developed with an emphasis on roles, functions and concurrent responsibilities. GTAC’s role included reviewing international experience in setting norms and standards, and developing an approach to setting norms and standards.

The project concluded that it is important to determine the exact purpose of minimum norms and standards and how these affect concurrent functions. Norms and standards set for functions in local government must ensure which functions are being devolved or assigned to local government. Costing of norms and standards is also critical. The National Treasury and the Fiscal and Finance Commission will play a bigger role in this work once each department adopts and implements their norms and standards.

KwaZulu-Natal Department of Cooperative Governance and Traditional Affairs

GTAC provided support to the KwaZulu-Natal Department of Cooperative Governance and Traditional Affairs by developing a departmental guideline on monitoring and evaluation. It was anticipated that this support would lead to the institutionalisation of performance management, with consequences for non-adherence to the policy and framework, to ensure transparency and accountability.


Government is committed to improving the quality and pace of service delivery, and recognises that this requires a significant improvement in the public service’s management practices. The former

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Technical Assistance Unit helped the Department of Planning, Monitoring and Evaluation develop the management performance assessment tool to assess the quality of management practices in national and provincial departments. The department also developed a municipal version of the tool called the municipal assessment tool. GTAC was asked to help pilot the application of the assessment tool in municipalities and develop criteria for wider application, particularly in municipalities with reduced capacity. Workshops with municipalities and a detailed study of the tool revealed that the municipal assessment tool had to be adapted to suit the specific needs and conditions of municipalities.

The refined assessment tool was renamed the local government municipal improvement model. This improved model is now used to measure the institutional performance of municipalities across key performance areas. In each area, performance is assessed against standards established by the relevant department. The local government municipal improvement model adopts a holistic approach to analysing institutional performance in municipalities.

Manufacturing, Engineering and Related Services Sector Education and Training Authority

GTAC is helping the Manufacturing, Engineering and Related Services Sector Education and Training Authority develop a monitoring and evaluation framework that will enable the authority to track the results of its skills development work, including its contribution to South Africa’s growth and development objectives. The framework will focus on impact and facilitate the effective use of information for management decisions and improvements in the authority’s skills development work. The project is ongoing.

Table 4: Technical Advisory Services project list Project

Nature of support Status

Department of Human Settlements: High-level diagnostic of the Technical Capacity Development Chief Directorate

Diagnostic Completed

Department of Planning, Monitoring And Evaluation: Support to distressed mining communities

Diagnostic Ongoing

Department of Economic Development, Environmental Affairs and Tourism: Eastern Cape Wild Coast integrated development programme (SIP 3)

Diagnostic Ongoing

Department of Rural Development and Land Reform: Cadastre modernisation programme

Diagnostic Pipeline

Limpopo Province Provincial Treasury: Infrastructure delivery support Diagnostic Pipeline Council for the Built Environment: Strategic support on the application of infrastructure delivery management system for built environment specialists

Diagnostic Pipeline

Western Cape Department of Economic Development and Tourism: Royal Cape Yacht Club

Review Completed

Western Cape Department of Economic Development and Tourism: Foreshore precinct development

Review Completed

Western Cape Department of Economic Development and Tourism: Government infrastructure maintenance skills pilot study

Review Completed

Department of Telecommunications and Postal Services: Wholesale open access network study

Review Ongoing

Eastern Cape Provincial Treasury: Review of the mandates of Eastern Cape public entities and their subsidiaries

Review Ongoing

National Treasury Asset and Liability Management: Review of provincial Review Pipeline

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Project


development finance institutions KwaZulu-Natal Department of Cooperative Governance and Traditional Affairs: End-term review of the strategic plan 2010–2015

Review Pipeline

Department of Environmental Affairs: National Framework on Marine Spatial Planning for South Africa

Review Pipeline

Quality Council for Trades and Occupations: Revision of strategic plan 2012/13 to 2016/17 and annual performance plan for 2014/15

Planning and budgeting

Completed

National Heritage Council: Support for medium-term strategic framework and annual performance plan


Completed

National Economic Development and Labour Council: Development of strategic plan and annual performance plan


Completed

Financial Intelligence Centre: Strategic support for Egmont Group Planning and budgeting

Completed

Ditsong Museums: Strategic plan facilitation Planning and budgeting

Ongoing

Department of Planning, Monitoring and Evaluation: Building capacity for the strategic and annual planning function


Ongoing

Public Service Sector Education and Training Authority: Development of 2015/16 annual performance plan


Ongoing

Tax Ombud: Strategic and annual performance plan 2015 Planning and budgeting

Pipeline

KwaZulu-Natal Office of the Premier: Facilitation of strategic planning and annual performance plan

Facilitation Completed

National Treasury, Public Finance: Leadership transition support Facilitation Completed Cooperative Banks Development Agency: Facilitation of strategic planning sessions

Facilitation Completed

East London Industrial Development Zone: Strategic planning support Facilitation Completed Department of Planning, Monitoring and Evaluation: Operation Phakisa: Health Lab

Facilitation Ongoing

National Treasury, Public Finance: Strategic planning for Economic Services Chief Directorate

Facilitation Ongoing

South African National Biodiversity Institute: Sustainable transformation process – phase 3

Change management

Completed

Eastern Cape Office of the Premier: Implementation of the provincial culture change programme

Change management

Ongoing

Department of Environmental Affairs: State of management of the oceans in South Africa


Completed

Department of Higher Education and Training: FET functions transfer Organisational development

Completed

Department of Higher Education and Training: Functions transfer Organisational development

Completed

Transport Education Training Authority: Organisational development review


Completed

National Arts Council: Organisational review Organisational development

Completed

Department of International Relations and Cooperation: Operationalisation of the South African Development Partnership Agency


Completed

Department of Planning, Monitoring and Evaluation: Operations management support programme


Completed

National Treasury, Public Finance: Development of a model for the management and operation of fishing harbours


Completed

Department of Public Service and Administration: Development of business case to define institutional arrangements


Completed

Eastern Cape Department of Education: Supply chain management improvement to contribute to the turnaround framework


Ongoing

Department of Public Works: Operational support to the department’s business improvement unit


Ongoing

Safety and Security Sector Education and Training Authority: Support for systems improvement and culture change


Ongoing

Eastern Cape Department of Sport, Recreation, Arts and Culture: Conducting an organisational review of the department


Ongoing

National Treasury: Technical support to the Office of the Chief Organisational Ongoing

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Project


Procurement Officer development Department of Planning, Monitoring and Evaluation: Monitoring programme


Ongoing

Neighbourhood Development Programme: Guidelines to develop the Urban Network Strategy support guide


Ongoing

Department of Planning, Monitoring and Evaluation: Opsup – phase 2 Organisational development

Ongoing

National Treasury, Intergovernmental Relations: Cities Support Programme: Nelson Mandela Bay organisational development support


Ongoing

Department of Home Affairs: Feasibility study for Border Management Agency


Ongoing

Department of Science and Technology: Feasibility study for Astronomy Management Authority


Ongoing

National Department of Health: Health Standards Compliance Office Organisational development

Completed

Office of Health Standards Compliance: Technical assistance to develop systems and build capacity


Ongoing

Department of Science and Technology: Feasibility study for the National Indigenous Knowledge Systems Office


Ongoing

National Treasury, Intergovernmental Relations: Cities Support Programme – leadership development support


Ongoing

Department of Telecommunications and Postal Services: Development of policy directions on rapid deployment


Pipeline

Eastern Cape Education: Integrated School Improvement Programme Organisational development

Pipeline

North West Department of Health: Implementation of operations management framework


Pipeline

Department of Mineral Resources: Review and re-engineering of business processes


Pipeline

National Treasury, Public Finance: Development of a funding model for Thusong service centres


Pipeline

Eastern Cape Office of the Premier: Support to the Office of the Premier technical support unit


Pipeline

Department of Cooperative Governance and Traditional Affairs: Shared services model for corporate and financial services for the Department of Cooperative Governance and Traditional Affairs and the Municipal Infrastructure Support Agent


Pipeline

National Treasury: Infrastructure Delivery Improvement Programme – phase 3

Programme management

Completed

Department of Arts and Culture: Support to implement capital works projects


Completed

Financial Intelligence Centre: Implementation of United Nations Office on Drugs and Crime support system


Completed

Department of Telecommunications and Postal Services: Broadband implementation plan


Ongoing

National Treasury, Intergovernmental Relations: Cities Support Programme: Technical management support for subnational doing business report


Ongoing

Financial Intelligence Centre: Business support system implementation Programme management

Ongoing

National Treasury, Office of the Accountant-General: Support for the municipal financial planning and budgeting reform programme


Ongoing

National Treasury, Intergovernmental Relations: Cities Support Programme: Monitoring and evaluation support


Ongoing

City of Johannesburg Department of Economic Development: Institutional and programme development support


Pipeline

Department of Communications: Establishment of a project management unit


Pipeline

Limpopo Department of Sport, Arts and Culture: Spending of the community library conditional grant


Pipeline

National Treasury, Intergovernmental Relations: Infrastructure delivery improvement support initiatives


Pipeline

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Project


Safety and Security Sector Education and Training Authority: Diagnostic and monitoring and evaluation framework for projects


Completed

Department of Planning, Monitoring and Evaluation: Development of norms and standards for concurrent functions


Completed

KwaZulu-Natal Department of Cooperative Governance and Traditional Affairs: Development of departmental monitoring and evaluation policy


Completed

Department of Planning, Monitoring and Evaluation: Municipal performance assessments


Completed

Manufacturing, Engineering and Related Services Sector Education and Training Authority: Assistance with monitoring and evaluation policy and framework


Ongoing

National Treasury, Budget Office: Improved expenditure monitoring and data reporting systems


Ongoing

Department of Planning, Monitoring and Evaluation: Phakisa operations manual

Methodology development

Pipeline

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ENVIRONMENTAL ECONOMICS AND FINANCE

Unit Head: Sharlin Hemraj

During the reporting period, GTAC conducted a review of environmental public finance issues. The centre also supported several climate-change policy initiatives and provided economic analysis to the Department of Environmental Affairs.

Biofuels incentive mechanism

South Africa’s Biofuels Industrial Strategy, adopted in 2007, recommends the development of a financial incentive mechanism to support a 2 per cent penetration of biofuels into the national road transport fuel pool. A position paper drafted by the Department of Energy in 2013 proposed a production incentive for biofuels based on a return on assets of 15 per cent. It set out details on the licencing criteria for manufacturers; biofuels pricing and reference crops; qualifying criteria for the biofuels subsidy scheme; and proposed administration of the biofuels levy and disbursement of funds. For the pricing framework, the position paper expanded on the financial model to be used to determine the levels of the incentive required to support the production of bioethanol and biodiesel.

The National Treasury has undertaken further work on risks to the fiscus associated with the proposed incentive, including the open-ended nature of the liability. To support this work, GTAC provided the National Treasury with an assessment of the biofuels incentive mechanism. The National Treasury and the Department of Energy compiled a joint briefing note outlining the alternative approach of a competitive bidding process for the biofuels incentive mechanism for their respective ministers.

Waste tyre management

South Africa generates a significant amount of tyre waste. The inappropriate disposal of existing and legacy waste tyres – either into landfills or dumped illegally – has negative environmental consequences. In response, the Minister of Water and Environmental Affairs has approved the Recycling and Economic Development Initiative of South Africa.

GTAC has supported the National Treasury in clarifying the nature of proposed fees as “taxes” under this initiative, the flow of collected revenues to the Department of Environmental Affairs, and associated governance and institutional arrangements. This process resulted in the announcement of the tyre levy in the 2015 Budget. GTAC also provided support on the implementation process for the tyre levy, and the need for further consultation on the establishment of the Waste Bureau to manage and oversee industry waste management plans.

Biodiversity finance initiative

The United Nations Development Programme has initiated a process to quantify the level of spending on biodiversity management. South Africa has been selected as a recipient of funding for a pilot project. This work will entail a policy, institutional and expenditure review. The Department of

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Environmental Affairs appointed a national project lead in March 2015 and GTAC has been asked to provide economic analysis support for this initiative.

Climate finance

The National Climate Change Response Policy requires South Africa to develop a monitoring and evaluation system to measure progress against targets. In 2014, the Department of Environmental Affairs began a process to develop the monitoring and evaluation system, including setting up a greenhouse gas emissions inventory and recording climate finance flows.

During the reporting period GTAC coordinated National Treasury inputs on climate finance data and the design of the monitoring and evaluation system. The centre also facilitated discussions with interested parties such as the Renewable Energy Independent Power Producer Procurement Programme (REIPPPP), the South African National Energy Development Institute and the National Business Initiative.

Discussion paper: public environmental expenditure

Government is working to encourage the shift towards a low-carbon, green economy. As part of a longer-term project, GTAC has prepared a discussion paper on environmental expenditure programmes, which will be published in 2015/16. It reviews South Africa’s public programmes, resources and instruments to support the transition to a green economy, informed by methodologies developed by the World Bank and the Organisation for Economic Cooperation and Development.

PUBLIC FINANCE AND EXPENDITURE REVIEWS

Unit Head: Ronette Engela

Purpose

Government’s performance and expenditure reviews are a joint project initiated by the Department of Planning, Monitoring and Evaluation and the National Treasury. The project will cover between 20 and 30 leading policy initiatives. It is designed to identify options to obtain greater value for money and improve alignment in the use of development and service-delivery indicators. The latter objective will strengthen performance monitoring, and budget planning and reporting, across government.

Review topics are identified during discussions of the Ministers’ Committee on the Budget and include priority areas identified in the National Development Plan.

Each public expenditure review has a steering committee composed of officials from the National Treasury, the Department of Planning, Monitoring and Evaluation and the relevant national department. Technical analysis is done by consultants appointed through a tender process. Progress is tightly monitored through a formal system that requires joint evaluation and sign-off. Projects typically take place over four to five months. A completed review includes programme analysis and performance measures, expenditure analysis, and costing models with forward projections, proposed scenarios and rollout plans.

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Highlights, achievements and challenges

The first phase of reviews has been well received, contributing knowledge about key programmes and options to improve budgeting and value for money.

Following the completion of analytical work, the Department of Planning, Monitoring and Evaluation, the National Treasury and affected departments discuss reform options. To date these fall into three categories:

Improvements to government’s Basic Accounting System and other state information systems.

Use of technical information to improve programme planning and implementation. Institutional and policy options for additional consideration.

The extensive modelling provided by the reviews allows officials to understand the impact of policy parameters on budget requests and to make proposals for possible savings. The methodology can be expanded to estimate the costs of new policy proposals. A process is under way to develop guidelines and tools to broaden practical access to this methodology.

In some cases, the studies identify policy and programme design challenges that may prompt more in-depth reviews. For example:

Following completion of a review of language services policy and activities of related entities, the Department of Arts and Culture is undertaking reforms in these areas.

Reform of business processes of the artisan training division in the Department of Higher Education and Training, and the National Skills Fund has been initiated.

Following a scarce skills study in the Department of Home Affairs, a broader review of issues associated with the Basic Accounting System is under way.

Reviews of public transport and housing have generated considerable interest. Further work on the links between urban housing and public transport is in progress. A focus group has been formed to create a better understanding of the interdependencies and dynamics linking human settlement, transport and urban spatial forms, and to identify ways to strengthen programmes.

In taking the public expenditure review project forward, problems in obtaining data in appropriate formats will need to be addressed, particularly in complex areas of work. Cooperation of line departments and officials, and action on review implications are important determinants of success.

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Highlights of completed and current studies

Given that this is GTAC’s first annual report, it is reporting on both current and completed studies – including those that were concluded before the current reporting period.

Micro Agriculture Finance Institutions of South Africa (completed April 2014)

The Micro Agriculture Finance Institutions of South Africa (MAFISA) was designed to provide loan financing to small and very small agricultural producers and processors. Government allocated R1 billion to MAFISA in 2005. Micro-loans are made through a system of financial intermediaries appointed by the Department of Agriculture, Forestry and Fisheries. Beneficiaries pay 8 per cent interest on the loans, and the intermediaries carry the risk of default.

The study shows that MAFISA is only viable if a default rate of less than 5 per cent can be maintained. This does not appear to be realistic in the agricultural environment. If government decides to continue with MAFISA or similar programmes, a workable risk-sharing structure should be designed. In addition, there is a policy coordination problem given the number of grant instruments in agriculture. Action has been taken to withdraw MAFISA funds and address the outstanding loan book. It seems likely that a high proportion of loans will be not be recovered.

Pan South African Language Board, Commission for the Promotion and Protection of the Rights of Cultural, Religious and Linguistic Communities, and Department of Arts and Culture Language Services (completed April 2014)

Unclear and open-ended mandates appear to have contributed to poor operational focus and overlaps in activities related to the “promotion and development of languages”. Three entities work in this area, but there is limited consultation among them when planning activities and outputs. This review raised concerns about the cost implications of the Use of Official Languages Act (2012), which requires all national departments, national public entities and enterprises to have a language unit.

Artisan development programme (completed July 2014)

Artisan training has been revived from a low point in 2005, when only 4 500 artisans qualified, to nearly 15 000 in 2013. Artisan development currently costs government just over R4 billion per year. The National Development Plan sets a target of 30 000 artisans a year by 2030, and expenditure is set to expand to nearly R6 billion by 2018. Although significant investment in artisan training is required, the study shows that better value can be obtained from allocated funds. The quality of programmes offered by technical vocational education and training colleges, and their throughput rates, need to be improved if employer confidence in these programmes is to be increased.

National Skills Fund (completed July 2014)

The National Skills Fund receives about one-fifth of the skills development levy of 1 per cent on all payrolls. The fund is meant to play a catalytic role in post-school education and training. However, the various national skills development strategies do not give clear direction on how this role is to be fulfilled. In recent years, substantial National Skills Fund funding has gone towards financing

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budgetary shortfalls in FET colleges and the National Student Financial Aid Scheme. These stop-gap measures are not consistent with the National Skills Fund’s intended role.

Moreover, funding the budgetary shortfalls of colleges and the National Student Financial Aid Scheme out of its reserves will deplete the National Skills Fund’s reserves over the next three years. It is unclear how further budgetary shortfalls will be financed, placing the fiscus under additional pressure.

The expenditure review suggests that refocusing National Skills Fund funding on bridging programmes to enable the young and unemployed to obtain post-school education and training, and on industry-relevant technical and vocational programmes, could benefit about 170 000 learners a year.

Small Enterprise Development Agency technology incubators (completed July 2014)

The study of the technology incubation programme of the Small Enterprise Development Agency shows that it is well-conceived and consistent with global best practice for small business development, technology adoption and long-term sustainability. In recent years, the focus on technology has been diluted from a performance targeting and monitoring perspective. The review recommends that this should be given renewed focus in the expected realignment of enterprise support agencies associated with the establishment of the Department of Small Business Development.

Land restitution (completed August 2014)

To date, the Land Restitution Programme has settled 85 per cent of about 60 000 claims lodged since its inception in May 1995. Most of the settled claims were urban (87 per cent) and were relatively straightforward. Most initial claims (92 per cent) were finalised through financial compensation. Since the inception of the Commission on Restitution of Land Rights, R29.3 billion has been spent on land restitution. The number of claims settled per year has been declining since 2002, and in the last five years only 2 808 claims were settled. As at March 2013, there were 8 733 outstanding claims.

According to a regulatory impact assessment done by the Department of Rural Development and Land Reform, the reopening of the claims process could result in the registration of an estimated 397 000 new claims. Based on current trends, the cost of land claims over the next two decades could be between R230 billion and R265 billion.

The process that underpins the restitution programme is inherently complicated and highly structured. However, its efficiency is compromised by weak business processes, human resource constraints, and overlapping roles and responsibilities between the Department of Rural Development and Land Reform and the Commission on Restitution of Land Rights.

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Effective partnering of science councils with the private sector (completed September 2014)

As a group, South Africa’s science councils generate about R0.62 in private income for every R1 invested by government. This is low by international comparison. The exceptions are Mintek and, to a lesser degree, the Council for Scientific and Industrial Research. (Private income in the study includes contracts with state-owned companies, which account for a small proportion of councils’ income.) It is apparent from the study that partnerships with the private sector have not been given sufficient priority as a policy objective. While not necessarily appropriate for science councils, important links with trade and industry policy, and technology development, should be pursued.

Public transport systems in five metro areas (completed November 2014)

Public transport services are characterised by long travel distances, high peak demand, minimal off-peak use and unidirectional travel patterns strongly influenced by the spatial structure of South African cities. Government subsidies for rail and bus public transport are high, equivalent to about 60 per cent of the cost of rendering the services. Yet it is estimated that 18 per cent of households spend more than a fifth of their income on transport.

Suboptimal and fragmented management of public transport services contributes to high costs. The wide range of institutional arrangements, combined with fragmented control over transport budgets, means that large shares of public resources are allocated to services carrying relatively fewer passengers, while high-volume services provided by minibus taxis receive much less support.

Over the short term, these deficiencies can be addressed by improving institutional alignment between public transport departments at provincial and local level, and PRASA. Metropolitan government should become the key site of decision-making. This would facilitate better planning and integration. In addition, a pragmatic approach to the articulation between formal transport and the minibus taxi sector is needed. Current plans to formalise the taxi industry, or replace it with more formal services, are unlikely to be affordable in the short term.

Over the longer term, government needs to integrate public transport and land-use planning to change the urban spatial form. This includes shortening travel distances, creating bidirectional passenger flows throughout the day, and reducing the high differential between peak and off-peak demand. Short-term strategies to support the densification of cities in specific nodal areas and along identified corridors will help to reduce the costs of public transport.

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Scarce skills immigration policy (completed November 2014)

Skilled immigrants contribute to economic growth and create jobs. Many countries seek to obtain scarce skills through preferential immigration criteria, sometimes combined with active recruitment programmes. South Africa’s formal immigration policy is still based on a labour protection paradigm, though government has signalled the intention to change this approach. The National Development Plan sets a target of 50 000 scarce skills visas to be issued a year by 2030.

The study assisted the Department of Home Affairs in developing a proactive skilled immigration policy and implementation plan based on a well-researched scarce skills list and taking into consideration the costs of mission consular services and permitting procedures.

Funding model for social housing (initiated October 2014)

In social housing projects, government capital and institutional subsidies account for about 70 per cent of expenditure. The balance is raised through debt and private-sector equity funding. Private-sector investment in social housing, which is determined by projections of future rental income and operating costs, has been stagnant. The study seeks to identify factors that could contribute to greater private investment in social housing, and options for more efficient and effective use of available funds and institutional capacity.

Water and sanitation value chain (initiated October 2014)

Providing water to households involves various stages, from collection and storage of raw water, to supply of bulk water, to provision of potable water and subsequent recovery through treatment plants. Management of water flows and associated expenditure is negotiated through a complicated institutional landscape that includes a Department of Water Affairs trading account, 15 water boards, and district and local municipalities. The review seeks to better understand this process, and identify and assess alternative arrangements for cost recovery rather than ongoing fiscal transfers. There is a concern that some of the present infrastructure subsidies in the municipal infrastructure grant and the funding for water boards involve overlapping funding for the same services.

Provincial road expenditure (initiated October 2014)

A comparative cost study of provincial road expenditure is working to understand trends and cost drivers. While unit costs between provinces differ because of differences in geography and soil conditions, it is not clear that the range of unit costs per kilometre for similar roads can be ascribed to these differences. This study should contribute to better road rehabilitation, maintenance planning and budgeting.

Nutrition and food security for children (initiated October 2014)

There are 18 nutrition intervention programmes undertaken by national and provincial departments of Health, Agriculture and Social Development. Expenditure trends for these various interventions are not readily available. This study aims to assist in this regard.

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School infrastructure delivery (initiated October 2014)

There is a large difference in the costs of school infrastructure between provinces – even where buildings and circumstances are similar. A detailed understanding of unit costs for school infrastructure delivery is required, along with models predicting future costs and possible savings. The Department of Basic Education gazetted a set of norms and standards for school infrastructure in November 2013. The cost implications of these norms, most of which are to be phased in over 10 years, are not yet clear.

Further education and training funding (initiated October 2014)

FET colleges can provide unemployed young people with skills, and contribute to productivity and growth. The full cost implications of the proposal to double the number of people presently trained need to be understood. In the earlier National Skills Fund study, it became apparent that FET colleges were charging different fees for similar courses and raising income through diverse services to business clients. To help assess budget proposals for increased capacity, the National Treasury seeks a clear picture of the value of current expenditure. The National Skills Fund study has provided some insight into FET costs and has identified possible concerns about the relevant funding norms.

Government accommodation – leases (initiated October 2014)

Government leases a significant portion of its office accommodation from private landlords. The cost of leasing those premises is about R3 billion per year and is a significant area of government expenditure. Perceptions of state departments overpaying for office accommodation and/or not deriving value for money have fuelled concern of the additional burden on the fiscus. The study aims to review the rental costs for leased-in office accommodation.

Personnel expenditure trends (initiated March 2015)

The growth of the personnel expenditure component of the national budget needs to be better understood. Initiatives such as the occupation-specific dispensation for scarce personnel appear to have had a far larger impact on departmental budgets than was envisaged. In addition, the National Treasury would like to support discussions in the Public Service Coordinating Bargaining Chamber through detailed projections and modelling of the fiscal consequences of various proposals, including those involving housing benefits and possible medical scheme benefit amendments.

A series of detailed sectoral reviews of personnel expenditure (beginning with education, health, defence and the South African Police Service) will be undertaken. These will enable scenarios for remuneration and employee benefits to be quantified. An overarching model to assess headline and general trends in personnel will be developed on the basis of data extracted. This is a large project that will be undertaken in phases over two years.

JOBS FUND PROJECT MANAGEMENT UNIT

Unit Head: Najwah Allie-Edries

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The Jobs Fund supports initiatives that generate employment in innovative ways. The fund offers once-off grants in the areas of enterprise development, infrastructure, support for work seekers and institutional capacity building.

The fund awards grants through a competitive project application process that rewards the best ideas. Funding allocations are transparent, open and competitive, and are made by an independent investment committee. Project partners are required to share risks and costs by matching the grant fund allocation.

Since its inception in July 2011, the Jobs Fund has concluded four calls for proposals, allocating R4.7 billion in grants to 90 approved projects. At end-March 2015, R2.5 billion had been disbursed to active portfolio projects that had created 47 967 new permanent jobs and placed 21 100 beneficiaries in previously vacant permanent positions. The fourth-round projects, approved in January 2015, involved existing partners scaling up projects already under way. The fifth call for proposals targets the agricultural sector. The application stage for this round closed in February 2015. The fund’s technical evaluation committee has recommended 30 partners to submit a full business case.

MUNICIPAL FINANCE IMPROVEMENT PROGRAMME

Unit Head: Danie Beukes

The MFIP, now in its second phase, is an initiative of the Office of the Accountant-General. It is financed through Programme 8 of the National Treasury vote. The MFIP is designed to support municipalities in meeting the requirements of the Municipal Finance Management Act and addressing associated capacity constraints.

The MFIP’s programme management unit operates within GTAC. It is responsible for planning and preparing the MFIP’s work programme, managing its budget, formulating its scope of work and specific project objectives, managing its projects and evaluating resource performance.

The MFIP II includes support for the municipal finance reform activities of the Intergovernmental Relations Division of the National Treasury, including improved financial monitoring and reporting and implementation of the municipal chart of accounts.

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INDEPENDENT POWER PRODUCER PROCUREMENT PROGRAMME OVERVIEW

The Department of Energy, the National Treasury and the Development Bank of Southern Africa established the IPPPP at the end of 2010. This urgent intervention sought to increase power generation capacity, subject to relevant provisions of the Electricity Regulation Act and under the authority of the Minister of Energy.

The programme’s overall mandate is to secure electrical energy generated from renewable and non-renewable sources from the private sector. Private-sector participation diversifies the supply and nature of energy production, improves energy security, introduces new skills and investment into the energy technology industry, and enables the benchmarking of performance and pricing. The renewables component of the programme, described below, makes an important contribution to reducing South Africa’s reliance on fossil fuels.

The IPPPP is designed to be self-funding through revenue derived from development fees paid by IPP bidders and investors, which cover the programme’s additional operational, procurement and contract management expenses. The office’s operational expenditure is recovered from IPP development fees in a programme account maintained by GTAC on behalf of the National Treasury and the Department of Energy. The IPPPP Office is administratively supported by the Development Bank of Southern Africa.

RENEWABLE PORTFOLIO

The REIPPPP is the most advanced component in the IPPPP portfolio. It is seen globally as a success story, with lessons for both developed and developing countries. The programme currently considers projects based on onshore wind, concentrated solar power (CSP), solar PV, small hydro, biomass, biogas, landfill gas and cogeneration technologies. It aims to:

Procure 13 225 MW of renewable energy by 2020 from various sources, including onshore wind, CSP, solar PV, small hydro, biomass, biogas and landfill gas.

Contribute to socioeconomic development and environmentally sustainable growth. Stimulate the domestic renewable energy industry.

Under the REIPPPP, tenders are structured in a rolling bid-window programme that facilitates sustained market interest and increases competitive pressure among bidders to reduce pricing.

As at 31 March 2015, there were four approved REIPPPP bid windows, as shown below.

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Table 5: REIPPPP bid window summary, end-March 2015

The table below summarises the total capacity and number of projects procured as at end-March 2015. In total, 4 122 MW of electricity has been procured from 66 projects, of which 1 709 MW has been connected to the national grid.

Table 6: REIPPPP projects by technology and capacity, end-March 2015

Notable achievements of the REIPPPP include the following:

Average tariffs have declined as a result of the competitive procurement approach, with the average tariff (in 2013 terms) for onshore wind declining by 43 per cent to an average of R0.74 per kWh, and for solar PV by 68 per cent to R0.99 per kWh between bid window 1 and 3.

IPPs have committed a total R145 billion in investment. Some 49 per cent of IPP construction spend has been procured from local suppliers. South Africans own 50 per cent of REIPPPP projects. As at end-March 2015, black South Africans

owned 28 per cent of total projects that have reached financial closure. Relative to comparable coal- and diesel-generated Eskom power, 3.3 million tonnes of carbon

dioxide equivalent reduction has been achieved. The majority of IPP projects have reached commercial operation earlier than initially envisioned.

Bid window 1 Bid window 2 Bid window 3 Bid window 3.5

Submission date: 4 November 2011

28 preferred bidders 1 425 MW of

contracted capacity Financial close:

5 November 2012

Submission date: 4 March 2012


contracted capacity Financial close: 9 May

2013

Submission date: 19 August 2013


contracted capacity Financial close: 16 of

17 projects have reached financial close, one remaining project expected to reach financial close in Q3 2015/16

Submission date: 31 March 2014

Two preferred bidders 200 MW of contracted

capacity Financial close:

Expected in Q3 2015/16

Technology Bid window 1 Bid window 2 Bid window 3 Bid window 3.5 Total MW Nr MW Nr MW Nr MW Nr MW Nr

Onshore wind 649 8 559 7 787 7 - - 1 995 22 Solar PV 627 18 417 9 435 6 - - 1 479 33 Solar CSP 150 2 50 1 200 2 200 2 600 7 Landfill gas - - - - 18 1 - - 18 1 Biomass - - - - 17 1 - - 17 1 Small hydro - - 14 2 - - - - 14 2 Total 1 425 28 1040 19 1457 17 200 2 4 122 66

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The REIPPPP has led to South Africa’s inclusion as one of the world’s top 10 markets for utility-scale solar power capacity (solar installations of 5 MW and above) and the top 10 renewable energy investing countries in 2014.1

PROGRAMME EXPANSION

The IPPPP Office has announced an expansion of the programme under bid window 4. The programme is also broadening its invitations to independent small-scale renewable energy producers. At the same time, the Department of Energy has expanded the mandate of the IPPPP Office to include the procurement of electrical energy from coal, natural gas, cogeneration and imported hydro in line with 2010 Integrated Resource Plan requirements.

1 Sources: http://www.southafrica.info/business/success/energy-080714.htm#.VVGyMfmqozt and Frankfurt School and United Nations Environment Programme Collaborating Centre for Climate & Sustainable Energy Finance. 2015. Global Trends in Renewable Energy Investment 2015. Frankfurt School: Frankfurt.

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NATIONAL TREASURY PROGRAMME 8: TECHNICAL SUPPORT AND DEVELOPMENT FINANCE OVERVIEW OF THE TECHNICAL SUPPORT AND DEVELOPMENT FINANCE PROGRAMME

The National Treasury’s Programme 8: Technical Support and Development Finance aims to build public-sector capacity by offering a range of diagnostic services, organisational development, and programme and project implementation support; to improve capacity in PPPs and capital projects’ planning and oversight; to strengthen public-sector financial management and infrastructure delivery; and to facilitate job creation.

GTAC provides coordination and management support to the Technical Support and Development Finance Programme. The Programme 8 subprogrammes aim to:

Strengthen public finance management capacity in municipalities and support provincial treasury oversight of local government financial management.

Support infrastructure planning and implementation in provinces and infrastructure skills development in municipalities.

Promote public and private investment in city development, integrated urban networks and neighbourhood development initiatives.

Promote innovative and partnership-based approaches to job creation, jobseeker support and enterprise development.

LOCAL GOVERNMENT FINANCIAL MANAGEMENT SUPPORT

Financial management grant to municipalities

Background and purpose

The Municipal Finance Management Act Implementation Unit in the Office of the Accountant-General administers the financial management grant, which is available to all 278 municipalities. To receive the grant, municipalities must submit support plans that identify weaknesses in financial management to be addressed through the grant allocations. Financial management grant funds can be used to establish municipal budget and treasury offices; improve supply chain and audit outcomes; appoint financial management interns; invest in financial management systems, training and implementing reforms; and implement any financial discipline. Progress is monitored through regular reports to the National Treasury.

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Transfer of funds

In 2014/15, R449.1 million was disbursed in terms of the Division of Revenue Act (2014) in two payments. In July 2014, R442.3 million was transferred to 274 municipalities. Payment was delayed to four municipalities who either did not comply with the Division of Revenue Act requirements or did not provide their updated cash flows and reasons for spending prior funds slowly. The outstanding documents were subsequently submitted to the National Treasury after correspondence with these municipalities and R6.8 million was transferred to the remaining four municipalities in August 2014.

Financial management grant support plans

An analysis of the 2014/15 financial management grant support plans submitted by municipalities showed that municipalities on average planned to spend the grant as follows:

Figure 3: 2014/15 financial management grant planned spending

In 2014/15, funds were allocated to build capacity and skills development in finance and supply chain management disciplines within the minimum competency framework.

Reporting and outputs achieved

Municipalities have to submit financial management grant spending reports aligned to their support plans to the National Treasury on a monthly basis. Due to staffing constraints, it is impossible to undertake site visits or perform physical verifications at municipalities.

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The actual performance of the grant is best measured at the municipal level and can be audited as part of the regularity audit performed by the Auditor-General.

Total spending levels at the end of March 2015 were on average 67 per cent. The municipal financial year differs from the provincial financial year. The 2014/15 municipal financial year end was June 2015. In the past, spending has been close to 100 per cent at municipal year end.

The financial management grant contributed to the following outputs:

All 278 municipalities submitted their 2014/15 financial management grant support plans. 128 municipal managers and 140 chief financial officers completed municipal finance

management programme training as at 31 March 2015, and 8 946 municipal officials completed financial management and supply chain management training.

As at 31 March 2015, 1 302 interns were appointed in municipalities across all nine provinces.

Figure 4: Financial management grant interns

Municipalities reported the establishment of:

Internal audit units at 278 municipalities. Audit committees at 277 municipalities. Supply chain management units at 278 municipalities.

A total of 233 municipalities developed audit action plans to address 2013/14 audit findings.

Improvements in audit outcomes over the past five years are illustrated below.

2618 9 42 20

7

19 1515

196 3

18 9

14

12 714

1 1 1 1 1

EC FS GP KZN LP MP NC NW WC

Municipalities with at least 5 interns Municipalities with less than 5 interns

Municipalities with no interns

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Figure 5: Audit outcome – five-year trend

Since 2010/11, the number of municipalities that submit their annual financial statements to the Auditor-General on time has improved. Auditor-General reports also indicate a steady improvement in positive audit outcomes. In 2013/14, 266 municipalities submitted their annual financial statements to the Auditor-General by 31 August 2014. (Since then, all 278 municipalities have submitted their 2013/14 annual financial statements for audit.)

Figure 6: Submission of annual financial statements to Auditor-General by 31 August

Municipal Finance Improvement Programme II

Highlights and achievements of MFIP II

The MFIP II was based on other successful capacity-building programmes implemented by the National Treasury over the last 15 years. The programme took into consideration the

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recommendations outlined in the independent evaluation reports of the Siyenza Manje Programme and the MFIP I, including balancing strategy and operations with fresh approaches to capacity building; changing design elements; applying strict entry criteria; undertaking initial diagnostics and more focused reporting; and placing greater emphasis on institutional issues.

Because an unqualified audit opinion is not an indicator of improved service delivery, it is not the sole focus of the MFIP II. The MFIP II’s objectives incorporate all aspects of the municipal accountability cycle, including strategic planning, budgeting, in-year implementation and compilation, annual financial statements, annual reports, asset management and supply chain management.

To improve programme governance, communication and stakeholder relations, a programme steering committee comprising representatives of the chief directorates within the National Treasury mandated and responsible for local government, representatives from the provincial treasuries and GTAC was established. The programme steering committee aims to give effect to the guiding principles informing the MFIP II support modalities by implementing a participatory and consultative engagement process; adapting to the sometimes volatile local government environment; improving efficiency and effectiveness through a dedicated centralised programme management unit; and improving accountability and ownership by establishing MFIP steering committees.

The programme is conservative, using a three-year programme as a basis for future trends (year one is used as a baseline with just two comparative years). The programme management unit will use emerging defined trends to test whether a positive correlation exists between the number of successfully completed outputs within the institution itself and (generally at an increasing rate in year two) in technical compliance. Although raw data from the MFIP I pointed towards a possible correlation, no clear conclusion could be made at that time. The MFIP II will examine this further to inform future support modalities.

Institutional and technical impact

The impact of the MFIP II’s institutional reforms is already evident in its first financial cycle. A detailed breakdown showing the extent of compliance with individual institutional outputs is available, including progress across individual municipalities.

The programme has supported 11 municipalities since January 2015. As at 31 March 2015, 180 out of 275 (65 per cent) activities were complete. Depending on the extent of support provided, municipalities are required to complete up to 25 activities, although this figure differs in the data provided as certain activity deadlines had not yet occurred.

The ongoing sustainable achievement of these institutional activities, which is seen as a precursor to becoming technically competent, should over time result in greater compliance with the Municipal Finance Management Act – enhancing municipal financial management by using financial resources efficiently and placing those resources against service delivery priorities more effectively.

Because advisors were only effectively placed in municipalities from 12 January 2015, only a small percentage of the overall technical outputs were completed by 31 March 2015. About 25 (or

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4 per cent) of a total of 572 activities were completed. This will change during the first quarter of 2015/16 as the advisors’ focus will move from the institutional activities, which have specific target dates due to their conditions, to technical implementation.

The reforms must be fully institutionalised to ensure sustainability. It is therefore extremely important to maintain a strong focus on capacity building within the budget and treasury offices and internal audit units of municipalities – and continue to scrutinise these units, specifically in terms of all institutional reforms associated with the MFIP II support plan such as ensuring the appointment of senior finance officials, regular reviews of organograms, staff development and the adoption of finance delegations as required.

Training and development initiatives

Capacity-building programmes often initially achieve targets at a slower pace as work culture and job design must evolve. Sustainable change is only possible in the medium to longer term, providing for more robust and systemic change in which a stronger and more independent institution will emerge. Central to this tenet is the need to continue to up-skill, train and develop provincial and municipal officials to meet their legislative obligations.

The programme provided support in all Municipal Finance Management Act functional areas in municipalities being supported. In the programme’s first year, municipalities received a total of 229 separate training sessions from advisors located in municipalities, with a combined coverage of 128 officials and 12 councillors since the programme started. Although this does not guarantee the enhancement of officials’ skills, it does contribute to their ongoing development.

Improved diagnostics and methodologies

Specialist consultants support municipalities experiencing particular financial management challenges in areas such as asset management, revenue management, financial planning and budgeting, costing and tariff setting, financial systems and processes and supply chain. These interventions provide the National Treasury with opportunities to explore improvements in its own assessments of these issues.

Organisational needs will continue to be framed by requests that are substantiated by objective evidence found in audit reports, management letters, the Local Government Database; and the Financial Management Capability Maturity Model (FMCMM) and performance reviews undertaken by the provincial treasuries, among others.

Expanded monitoring and reporting

The MFIP II improved its monitoring and reporting systems, taking into account the lessons learned from the first phase, and through that has been able to provide information to support other financial management reform programmes. Expansive dashboard reports that can be used to determine baseline achievements for other support interventions are prepared, as well as reports correlating municipalities’ institutional and technical achievements.

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The National Treasury uses weekly timesheets to calculate the time needed to implement and institutionalise some of the financial management reforms at the respective municipalities. Using these statistics, future support programmes can be efficiently and cost-effectively managed as the time to complete work can be set up front, thereby improving the National Treasury’s ability to negotiate rates payable.

These systems and information will be passed on to other stakeholders through this and other National Treasury reports.

Lessons learnt

The MFIP II is based on the MFIP I’s review, which was conducted in October 2013. This review attributed the failure of previous capacity-building initiatives to factors such as:

Uncertainty surrounding the roles and responsibilities of municipalities, as well as national, provincial and other stakeholders.

Assumption that a lack of capacity is the root cause of all municipal performance failures. Lack of prioritising municipal needs. Lack of performance monitoring. Absence of a mechanism to manage the transition of support.

Lessons learned during the MFIP II’s first year will be incorporated into future operations and other National Treasury capacity-building initiatives.

The Auditor-General’s management reports, among other sources, are used to assess municipalities seeking programme support, ensuring that support is given to critical areas not always clearly identified by the municipality or high-level audit reports. For example, the Auditor-General identified human resource management deficiencies that directly affect irregular and unauthorised expenditure, leading to qualified audit opinions.

The results of the FMCMM and 32 norms and ratios will also be used to inform future support requests, allowing advisors to prepare more focused support plans.

The MFIP II also maximises the involvement of stakeholders and key individuals in implementing reforms to minimise potential resistance to change and encourage organisations and individuals to champion change management strategies. The programme steering committee has been critical to the programme’s success, as decisions regarding support strategies are taken collectively, thereby strengthening the collaboration between the National Treasury and provincial treasuries.

Municipal progress is monitored and evaluated through quarterly site visits and weekly timesheets, both of which identify issues and potential problems much earlier, allowing more time for remedial actions to be taken.

Recruiting adequately skilled and experienced individuals to be placed as advisors at municipalities has been problematic. Of the 66 potential service providers identified from the MFIP II database and Technical Assistance Unit panel that were invited to submit proposals, 37 (56 per cent) responded,

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all of which were formally interviewed. Of these, 20 (30 per cent) were offered consultancy agreements and 16 (24 per cent) accepted.

To address the shortage of skilled advisors, the programme steering committee approved a proposal requesting permission to recruit 10 technical assistants to be paired with current advisors for six to nine months to improve their advisory skills before placement at municipalities. The assistants must still be recruited.

The MFIP’s main aim is to build financial management capacity in municipalities. To ensure that the services delivered by the programme and advisors serving on the programme are continuously addressing the actual needs of the municipality and are able to adapt to changes, the core of the signed support plan remains constant for the support period while biannual reviews inform areas of weakness and gaps.

A clear support plan, a steering committee that meets on a regular basis, strong political leadership and senior finance officials to champion the reforms are needed to successfully strengthen the organisations being supported, leading to improvements in technical competence and ultimately compliance with the Municipal Finance Management Act.

URBAN DEVELOPMENT AND SUPPORT

The neighbourhood development partnership grant, which supports municipal planning and investment in targeted locations, aims to attract and sustain third-party capital investment and business development to improve the quality of life and access to opportunity in underserved townships or settlements.

Introduced in 2013/14, the integrated city development grant supports metropolitan municipalities to improve spatial targeting and sequencing of infrastructure investments, particularly identified integration zones. The grant is administered by the Cities Support Programme.

These two complementary programmes support local government to use resources efficiently to achieve its economic growth potential and create vibrant, sustainable places for citizens. The neighbourhood development partnership grant is administered by the Neighbourhood Development Programme and the Cities Support Programme is administered by the Local Government Infrastructure Unit – both of which are located within the National Treasury’s Intergovernmental Relations Division.

Neighbourhood Development Partnership Grant Programme

Established in 2006, the Neighbourhood Development Programme Unit is responsible for managing the neighbourhood development partnership grant. This grant aims to fund, support and facilitate the planning and development of neighbourhood development programmes and projects that provide catalytic infrastructure to attract third-party public- and private-sector investment to unlock the social and economic potential in targeted underserved neighbourhoods, improving residents’ quality of life and contributing to South Africa’s economic performance.

The National Development Plan’s human settlement chapter highlights the importance of transforming towns and cities spatially to improve access to economic opportunities as well as the

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quality of life of citizens, especially residents in townships or those living on the periphery. The Neighbourhood Development Programme Unit’s strategic planning and investment framework, the urban network strategy, supports this transformation together with broader economic developmental outcomes.

Using the urban network strategy as a guide to changing the spatial form of South Africa’s larger urban centres, the Neighbourhood Development Programme aims to:

Support municipalities in city-wide strategic planning to ensure more integrated, equitable, efficient and effective cities focused on improving the lives of the urban poor.

Optimise public infrastructure investment, fiscal and regulatory development incentives and the coordinated urban management of targeted strategic nodes and urban hubs in townships.

Attract, coordinate and leverage private-sector investment into the targeted transit-oriented mixed-use precincts.

Provide the spatial-targeting component of the Cities Support Programme as reflected in the built environment performance plans (for metros). The programme is governed by conditions set out in the Division of Revenue Act.

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Figure 7: Urban network topology

Based on the urban network methodology, 26 strategic township urban hubs (transit-oriented nodes) across South Africa’s eight metros and 10 secondary cities have been identified. Precinct design, urban hub development and project identification are under way. The neighbourhood development partnership grant also supports the sustainable development of each urban hub through targeted catalytic project funding for municipalities and a multi-stakeholder precinct management approach. The Neighbourhood Development Programme further supports municipalities through an Intersite/PRASA partnership, which provides municipalities with intermodal transit-oriented development procurement and planning expertise, and a capital project packaging facility (project preparation facility) available through the Development Bank of Southern Africa.

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Highlights, achievements and challenges

The neighbourhood development partnership grant comprises a technical assistance component and a capital grant component. The technical assistance component, which is managed through the GTAC project development facility account, is intended for network, precinct and project planning; project packaging and urban management coordination. The 2014/15 project expenses budget was R30 million. Of this, R17.3 million was spent on 26 technical assistance projects. The capital grant component provides catalytic investment into targeted township precincts. R590.4 million has been transferred to municipalities for capital projects in 2014/15.

Figure 8: Waaihoek urban hub phasing plan

The neighbourhood development partnership grant is also responsible for knowledge sharing and capacity building. The Neighbourhood Development Programme has developed a precinct management guideline, which has been advertised to key stakeholders such as the South African Local Government Association, property developers, PRASA and local government.

Since its inception in 2006/07 the neighbourhood development partnership grant has registered 317 projects across more than 65 municipalities. In total, 241 township projects have been completed to the value of over R2.5 billion and 42 township projects in urban areas and five in rural areas are still under construction. Neighbourhood development partnership grant projects in rural municipalities are supported in collaboration with the Department of Rural Development and Land Reform’s 27 priority district and small town regeneration programmes to explore the feasibility of a similar grant for rural areas.

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Figure 9: Waaihoek urban unification node

In 2014/15, all neighbourhood development partnership grant projects across 16 rural municipalities were completed. Preparations for the second handover stage are under way, with eight rural municipalities, including two new municipalities (Mbizana Local Municipality and Ingquza Hill Local Municipality), allocated technical assistance to support planning together with the Department of Rural Development and Land Reform.

Table 7: Neighbourhood Development Programme – strategic nodes and urban hubs

Municipality Township Hub name City of Johannesburg Soweto Jabulani Mall Area Diepsloot Diepsloot Ekurhuleni Tembisa Tembisa Station (Intersection 2nd October/Andrew

Mapheto Drive) Daveryton Daveryton/Etwatwa Vosloorus Katlehong/Thokoza/Vosloorus Kwa-Thema Kwa-Thema/Tsakane/Duduza City of Tshwane Mamelodi Denneboom Station Hammanskraal Hammanskraal Station Mabopane Mabopane/Soshanguve Station Atteridgeville Saulsville Station Ga-Rankuwa Ga-Rankuwa Hospital Mangaung Bloemfontein CBD Bloemfontein CBD Cape Town Philippi Philippi Nelson Mandela Ibhayi Ibhayi Cluster Emfuleni Evaton Sebokeng (Intersection of K53/Moshoeshoe and K178

(Boy Louw) Mbombela Tekwane South Tekwane South

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Municipality Township Hub name Matlosana Jouberton N12 separating Jouberton and Alabama (New Tower

Mall) eThekwini Umlazi W Node Mpumalanga Mpumalanga Town Centre KwaMashu KwaMashu Town Centre and Bridge City Buffalo City Mdantsane Mdantsane Town Centre (Highway Node) Rustenburg Phokeng Rustenburg CBD Msunduzi Edendale Edendale, along Sinathiingi Road Emalahleni Kwa-Guqa/Hlalanikahle Witbank CBD Newcastle Madadeni Madadeni/JBC/Osizweni Polokwane Seshego Seshego Sol Plaatje Galeshewe Kimberley CBD/Indian Centre Mogale City Kagiso/Sinqobile Cluster Leratong Node

Table 8: Neighbourhood Development Programme – flagship projects

Municipality Township name

Hub name Projects Capital grant

Tshwane Ga-Rankuwa Ga-Rankuwa Hospital

Ga-Rankuwa walkways R26 633 125

Hammanskraal

Hammanskraal CBD Pedestrian bridge and traders’ stall over R101

R42 935 380

Saulsville Saulsville CBD Pedestrian bridge over the railway lines

R32 723 718

Cape Town Philippi Philippi East Mitchells Plain link road R31 926 432 Lentegeur PTI: Western forecourt

R17 459 171

Stock Road: Rehabilitation and NMT

R52 048 633

Mbombela Tekwane South Tekwane South (FH) Kanyamazane road link R69 979 066 Matlosana Jouberton N12 separating

Jouberton and Alabama

Jabulani/Buitekant Street R28 224 879

Pedestrian bridge R21 625 000 eThekwini Umlazi W Node KwaMnyandu activity bridge R31 891 255

Shezi Road public realm elements

R30 599 375

Msunduzi Edendale Edendale, along Sinathiingi Road

Thwala Road upgrade R20 892 712

Newcastle Madadeni Madadeni/JBC/Osizweni

Osizweni secondary node walkways

R32 527 227

JBC urban hub traffic lights and walkways

R20 096 104

Polokwane Seshego Seshego Seshego roads upgrade R28 097 350

Mogale City Kagiso/Sinqobile Cluster

Leratong Node Upgrading walkways along Kagiso Drive to Kagiso Mall

R35 829 507

Leratong pedestrian walkways

R10 650 589

Munsieville pedestrian walkways

R20 627 548

Upgrading intersection of Jacobs and Geba streets in Kagiso

R5 107 889

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Cities Support Programme and integrated city development grant

Background and purpose of the Cities Support Programme

Reversing the exclusionary nature of the urban spatial economy is embedded in the Constitution. The National Development Plan recognises that the sprawling, low-density and segregated land-use patterns in South African cities are economically inefficient, highly inequitable and prevent higher rates of national economic growth.

South Africa’s largest cities need to be managed in a way that captures the benefits of their growing economic significance.

Although cities are growing, urbanisation has not resulted in higher economic growth, faster reductions in poverty levels or increased employment, as has occurred elsewhere in the world. For South Africa’s cities to become engines of growth, government needs to focus on making cities more productive, inclusive and sustainable.

The Cities Support Programme within the Intergovernmental Relations Division of the National Treasury was established in 2012. It is a demand-driven programme that supports metropolitan municipalities and the broader intergovernmental environment to achieve higher economic growth and reduce poverty levels. It works closely with the Intergovernmental Relations Division to foreground a cities-explicit agenda with a clear mandate to review the way cities are treated.

Implementation progress

Service providers have been hired to help implement the Cities Support Programme activities, focusing on support in the built environment, governance support, access to global technical experts (through the World Bank) and support to improve the infrastructure delivery management systems in cities.

In response to the changing way in which South African cities are being planned and built, in July 2014 the South African Cities Network and the Cities Support Programme jointly commissioned a study to develop a tool to inform spatial planning decisions in metros. The report and tool were completed in January 2015.

In 2014/15, the built environment performance plan review process was improved by aligning the reviews with the mid-year budget review process. Although the performance plans’ quality and content have improved, many cities did not supply sufficient information on catalytic urban development projects. To address this weakness, a supplementary note to the guidelines for the 2015/16 – 2017/18 built environment performance plan has been developed and issued to cities.

Following the success of a three-day workshop that was held in November 2014 to help municipal officials conceptualise and practically apply lessons learnt to their own catalytic projects, a series of expert panel reviews on identified catalytic projects in cities took place. To date the Urban Land Institute expert panels have reviewed existing project concepts for the Voortrekker Road Corridor (Cape Town), Sleeper site (Buffalo City Municipality) and Warwick Junction (eThekwini).

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During 2014/15, the programme engaged with the World Bank to define its support on urban transport mobility and access, resulting in another World Bank mission, which occurred in February 2015. As part of the mission, technical support meetings were held with the City of Johannesburg, eThekwini, Nelson Mandela Bay and Ekurhuleni. The work programme focused on the review of the integrated public transport networks in the various cities, including the fare policy and technology support in Johannesburg and fiscal and funding issues in eThekwini.

In 2014/15, the programme started a number of public transport projects. It also continued to redesign the fiscal architecture in the urban transport sector, with a particular focus on the possibilities for formula/results-based financing approaches for both capital and operating grants, and to undertake city-specific capacity-building activities that link city-level identified priorities with capacity constraints identified by national government.

The programme’s economic development component, which got under way in 2014/15, provided technical support on specific aspects of city economic strategies, including to Johannesburg, Cape Town and Nelson Mandela Bay. Support for Mangaung’s investment promotion programme was planned for August 2015.

The subnational “cost of doing business” report was finalised and will be launched in June 2015. The report measures the cost of doing business in cities against one another, and benchmarks their performance at an international level as well. The Cities Support Programme will provide support to weak areas and another assessment will be conducted in 2017 to review whether or not improvements have been made.

In addition, considerable effort was put into designing an executive leadership programme in city economic development, which is planned for November 2015. The programme will make focused, specific requests for economic development support from city governments.

In 2014/15, the Cities Support Programme began to reform municipalities’ reporting indicators by developing a set of indicators to measure the success of investments in the built environment to makes cities well governed, productive, inclusive and sustainable, and by reducing the number of indicators against which municipalities need to report. The eight metropolitan municipalities were consulted during this process. A workshop was held with all the cities on 30 March 2015 to discuss the indicators and another session to further refine the indicators will be held in May 2015.

INFRASTRUCTURE DEVELOPMENT SUPPORT

The infrastructure skills development grant

The infrastructure skills development grant is managed by the Chief Directorate: Provincial and Local Government Infrastructure within the Intergovernmental Relations Division of the National Treasury. This grant is a direct conditional grant to municipalities and a schedule 5B grant in terms of the Division of Revenue Act. The infrastructure skills development grant aims to support municipalities to build long-term sustainable capacity by training young professionals in technical skills needed in built environment professions.

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Unemployed graduates in possession of an appropriate tertiary qualification (a national diploma and/or a degree from an accredited university of technology or a university) are recruited for training and registration as professionals with the built environment statutory councils. Graduates are assigned to mentors, who ensure that graduates receive relevant training and complete the work required by the statutory councils. A total of 17 municipalities are participating in the programme.

Highlights and achievements

During 2013/14, the programme established a steering committee, comprising statutory councils and sector departments, which is responsible for providing strategic guidance and support, and advises on the training duration needed per skill category. In 2014/15 the programme:

Finalised the infrastructure skills development grant guidelines and policy documents. The municipalities are implementing the programme as per the guidelines and there is clear direction.

Recruited 424 graduates (2014/15 target: 350) for training in all 17 participating municipalities and the partnering water boards. A higher than expected number of graduates are registered as candidates with the relevant statutory councils.

Transferred the 2014/15 budget of R104.4 million to the 17 participating municipalities. Due to budget limitations, no new municipalities were allocated funding in 2014/15.

Compiled a database of all graduates and mentors.

Challenges and remedial measures

A number of graduates resigned from the programme due to attractive stipends from other organisations. To address this, the infrastructure skills development grant guidelines contain recommended salary scales for graduates. In addition, contracts now stipulate that graduates who resign before qualifying will be penalised.

Graduates are uncertain about employment in municipalities after completing the training programme, exacerbating graduate resignations in search of secure employment. To manage this, some municipalities have begun to approach district municipalities to establish possible placements for graduates after completing training.

Flagship projects

Workshops are held at the end of every quarter where municipalities present on their achievements, challenges and future actions, affording municipalities the opportunity to learn from one another, share lessons learnt and determine the best practice. In addition, the municipalities have formed a task team that is responsible for identifying challenges that may affect training, as well as developing solutions through case studies.

The geographic information system and property valuation graduates will be the first group to complete the training programme. The other skills categories will begin to exit the training

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programme from December 2015, while engineering graduates will complete their training from 2016 onwards due to the Engineering Council of South Africa’s complex requirements.

Infrastructure Delivery Improvement Programme

The fourth phase of the Infrastructure Delivery Improvement Programme focuses on implementing and sustaining the work done in the programme’s previous phases. As part of the fourth phase, the National Treasury is providing technical assistance to the national departments of Health and Basic Education as well as the provincial treasuries to help them implement and sustain the infrastructure delivery management system (IDMS) beyond March 2018.

Over the next three years, the Infrastructure Delivery Improvement Programme IV will focus on achieving the following outputs:

Output 1: The IDMS is internalised and embedded in a sustainable intergovernmental institutional system.

Output 2: The IDMS processes and systems are implemented by participating national and provincial departments.

Output 3: Appropriate capacity within the participating national and provincial departments to implement and maintain the IDMS.

Output 4: IDMS evaluation, monitoring and reporting systems are implemented and functional.

To realise these outputs by March 2018, the Infrastructure Delivery Improvement Programme aims to:

Improve infrastructure monitoring and reporting systems. Enhance the infrastructure delivery management toolkit. Institutionalise the IDMS’s human resources capacity. Reform legislation and infrastructure grant frameworks to support the IDMS. Embed the construction procurement strategy in the IDMS. Increase the focus on and budget for maintaining infrastructure. Design and implement a comprehensive training programme for officials interacting with the

IDMS. Ensure that knowledge and lessons learnt are shared across national and provincial

departments. The programme will also identify good practices within provinces and share them accordingly.

Highlights and achievements

In 2014/15, the programme established a programme support office at the Development Bank of Southern Africa, as well as a panel of service providers that will be used to procure technical assistants that will be deployed to support provincial and national departments that are implementing the Infrastructure Delivery Improvement Programme. The programme’s planning phase was reviewed.

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After consulting with national and provincial departments, 12 logical frameworks were developed. To date, a National Treasury logical framework has been approved by the Intergovernmental Relations Division and six Provincial Treasury logical frameworks have been approved by the respective department heads.

Eleven technical assistants have been appointed to help with the programme’s implementation. Six of them will form part of the National Treasury’s panel of experts and the remaining five have been assigned to various projects within the National Treasury.

The Office of the Chief Procurement Officer has developed procurement standards to guide procurement in the public sector. Employees responsible for human resources capacitation continue to assist national and provincial departments to build infrastructure units.

Challenges

There were delays in establishing a functional programme support office, procuring provincial technical assistants, and approving the infrastructure procurement standards developed by the Office of the Chief Procurement Officer.

Flagship projects

The programme helped the Directorate of Provincial Government Infrastructure to develop a web-based infrastructure reporting model.

Human resources oversight committees for each sector have been formed to assist the National Treasury, the national sector departments (Health, Basic Education, Public Works and Transport) and the provincial departments (Treasury, Health, Education, Public Works and Roads) to become sustainable by implementing the IDMS human resources capacitation framework.

The programme plans to enhance and refine the IDMS and infrastructure delivery management toolkit by incorporating the lessons learnt and developments that evolved during the programme’s third phase.

Facilitated through the University of Pretoria, the programme offers a two-day introductory training course on the IDMS. In 2014/15, 340 officials attended the two-day IDMS training session.

The programme is undertaking infrastructure procurement reforms by aligning infrastructure delivery-related legislation and developing procurement standards, instructions and guidelines within the context of the IDMS.

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EMPLOYMENT FACILITATION

The Jobs Fund

Establishment of the Jobs Fund

The Jobs Fund, established in 2011, supports initiatives that create employment in an innovative manner. The fund offers once-off grants in the areas of enterprise development, infrastructure, support for work seekers and institutional capacity building.

Progress with implementation, highlights, achievements and challenges

Of the 90 projects that have been approved, 86 have been contracted and 81 are being implemented. The table below depicts the cumulative implementation progress to date.

Table 9: Jobs Fund Implementation Programme (progress to date)

Indicators Target Actual % target reached

Projects contracted as at 31 March 2015 90 86 96

Projects reporting as at 31 March 2015 90 81 90

Jobs Fund grant disbursed as at 31 March 2015 R2.868 billion R2.514 billion 88

Grantee contributions leveraged R2.924 billion R3.003 billion 103

Total value of implementing projects R5.792 billion R5.517 billion 95

Permanent jobs created 43 746 47 967 110

Short-term jobs created 17 648 13 648 77

Placements 27 693 21 100 76

Beneficiaries completing internships 9 883 10 443 106

Beneficiaries completing training 88 365 98 859 112

The Jobs Fund has made good progress against its targets, with all targets at 76 per cent and above. The Jobs Fund exceeded a number of targets, including the new permanent job creation indicator by 10 per cent, the time-bound internship indicator by 6 per cent, and the training indicator by 12 per cent.

A number of the Jobs Fund projects have finished, providing an opportunity to identify lessons learned to improve future projects.

This information will be used to evaluate the interventions’ impact on job creation and to assess the success of the different projects’ implementation models. These assessments will help to identify:

Overall portfolio impact. Which models have worked best and why. Which models can be efficiently scaled. Which projects can be replicated in other areas. The factors that affect the success of a project/type of project.

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Ultimately, the results of these evaluations will produce sound best practice models and recommendations for job creation policy in South Africa.

Project implementation issues and delays

The following project implementation challenges have been noted:

Poor planning and underestimating the time needed to set up key project components results in delays in project implementation.

The seasonality of agricultural projects requires every project phase to be properly planned. A season lost in the agricultural sector negatively affects a project’s deliverables. Labour disputes in the metal and mining industries, for example, have a major impact on the implementation progress of some projects.

Projects underestimate the importance of securing partners. The limited institutional capacity of some Jobs Fund partners to implement their projects

effectively and provide the Jobs Fund with information on their progress has, in some cases, led to late disbursement, resulting in implementation delays and termination. Management team disruptions can also negatively impact on compliance and overall progress.

Unfavourable global economic conditions, such as exchange rate fluctuations, have delayed some projects.

Changing dynamics in the labour market have been a challenge. Projects in the work seekers funding window are struggling to find permanent positions for their beneficiaries. Due to slow economic growth, the labour market is depressed and a number of prospective employers are offering fixed-term contracts instead of permanent contracts to manage this risk. Projects in the agricultural sector have also reduced the anticipated number of jobs to be created, citing the change in employment policy as a key reason.

Projects that do not report (or report late) on their progress negatively affect the fund’s ability to meet its disbursement targets. The fund’s achievements are also underreported.

Financial management challenges

Various Jobs Fund projects encountered delays due to the following financial management challenges in 2014/15:

Lack of financial and management capacity within projects resulted in reporting delays and governance challenges.

Internal organisational procedural delays in cases where the project is housed within a large organisation or provincial government department.

An inability to secure matched funding by projects affected implementation plans and overall budget targets.

Delays in receiving the first advance disbursement due to contracting delays and other pre- implementation delays affected projects’ overall implementation schedule, especially in cases where the Jobs Fund’s disbursement represented a greater portion of the project budget.

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Highlighted Jobs Fund projects

Harambee Youth Employment Accelerator

Experience is the determining factor in how likely a person is to gain formal employment, locking out millions of youth caught in the vicious cycle of not having experience and not being able to access it. The Harambee Youth Employment Accelerator helps young South Africans to get and keep their first job through a bridging programme that directly addresses the needs of employers.

Harambee recruits South African jobseekers between the ages of 18 and 28 from marginalised communities who have not had permanent employment for 12 months and have been searching for work for at least six months.

Selected candidates are placed in the bridging programme, where they gain the basic skills, behaviours, mindset and profile required to integrate into the workplace. Successfully bridged prospects are placed in full-time employment with project partners and receive continued support from Harambee during their induction and transition into the workplace.

“The Harambee Youth Employment Accelerator is one of the Jobs Fund’s flagship projects. The fund’s objectives are well aligned with the work that the programme is doing – that is to focus on the upliftment of youth and women,” explained Najwah Allie-Edries, Head of the Jobs Fund.

Harambee’s first project, which concluded in January 2015, managed to exceed both of its performance indicator targets. The project received a Jobs Fund grant of R120 million and matched funding of R120 million.

Table 10: Harambee Youth Employment Accelerator (progress to date) Year 1 Year 2 Year 3 Contract total Demographics

Target Actual Target Actual Target Actual Target Actual % <36

% female

% male

% PDI

Permanent positions with project partners

1 495 1 566 4 330 4 490 4 175 4 060 10 000 10 116 97 63 37 100

Beneficiaries trained 1 640 1 780 4 928 4 495 2 767 3 293 9 335 9 568 100 56 44 100

As a result of its past success, Harambee was accepted into the scale-up round, which began in January 2015. The project received a Jobs Fund grant of R132 million and matched funding of R353 million.

The project’s targets are:

18 000 short-term jobs. 42 700 beneficiaries trained. 22 000 permanent placements with project partners. 8 000 permanent placements beyond project partners.

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Shanduka Black Umbrellas

Shanduka Black Umbrellas collaborates with partners in the private sector, government and civil society to address the low levels of entrepreneurship and high failure rate of 100 per cent black-owned emerging businesses in South Africa using an incubator model.

Over a three-year period, beneficiaries follow a structured programme that provides professional services including skills development, mentoring, access to markets and office infrastructure at a subsidised rate. These interventions help the entrepreneurs to build a solid foundation for establishing and maintaining sustainable businesses.

Shanduka Black Umbrellas received a R10.5 million grant from the Jobs Fund, which is matched with R8.2 million from the project itself. To date, the project has created 207 permanent positions, thus exceeding its projected figures. In addition, Shanduka Black Umbrellas ensures that at least 50 per cent of all businesses selected for the programme survive beyond the first three years of their existence (national average: 10 to 20 per cent).

The Jobs Fund is funding the Shanduka Black Umbrellas Durban and Pretoria incubator; however, only the Durban incubator’s results are included in this report. The project is still under way, yet the Durban incubator has already exceeded its contracted targets.

Table 11: Shanduka Black Umbrellas (progress to date)

Current quarter Inception to date Contract total Demographics

Target Actual Target Actual Actual Target % <36 % female

% male % PDI

Permanent positions with project partners

14 66 197 294 206 294 68 36 64 100

Cape Craft and Design Institute

The Cape Craft and Design Institute, a sector development agency in the Western Cape, supports the development and sustainability of the crafts sector in the province through:

Strengthening businesses by, for example, training on pricing, financial management and sales techniques.

Facilitating market access by, for example, match-making with buyers and publishing catalogues.

Product support, which involves testing different production processes with support from trainers and mentors.

The Cape Craft and Design Institute intends to use the Jobs Fund funding to provide financial support to relatively healthy small businesses to help them expand. For the Jobs Fund-funded project, the Cape Craft and Design Institute approached 28 companies already receiving support and analysed five to six areas where finance was needed to fund a specific intervention and the number of jobs expected to be created as a result of this support.

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The beneficiary companies also pledged their own matched funding contribution towards the cost of support. The project’s budget comprises the Jobs Fund grant of R11.6 million and matched funding of R2.9 million.

The project is still under way, yet it has already exceeded its “inception to date” target by 24 per cent.

Table 12: Cape Craft and Design Institute (progress to date)

Table 13: Jobs Fund projects

Project Status

The Knead Bakery Training and Enterprise Initiative Approved

Department of Local Government: Community Works: Schools Support Programme Approved

Trust for Urban Housing Finance Jobs Fund Leveraging Approved

Lima Rural Development Foundation: Smallholder Farmer Support Programme Completed

Southern African Wildlife College: Training and Development of Unemployed Youth Completed

Harambee: Yellowwoods Ventures Investments Completed

Guarantee Trust Corporate Support Services: Work-readiness Programme for Unemployed Graduates Completed

Mercedes-Benz South Africa Completed

Medipost Pharmacy Completed

South African National Parks Completed

AngloGold Ashanti Contracted

ECDC (Trading Up) AsgiSA Rural Agro Initiative Implementing

AsgiSA EC: Eastern Cape Community Forestry Implementing

Shanduka Black Umbrellas Implementing

Awethu Entrepreneurship Foundation Implementing

Project Preparation Trust KZN: eThekwini Development of Emerging Enterprises Implementing

TechnoServe South Africa: Job Creation through Small Farmer Commercialisation Implementing

Premier’s Advancement of Youth: Economic Development in a Learning Province Implementing

RedCap Foundation: Jumpstart Jobs Fund Expansion Project Implementing

Fetola Foundation: Graduate Intern Programme Implementing

Child Welfare South Africa Implementing

Buhle Farmers Academy Implementing

USE-IT: Compressed Earth Blocks Implementing

KwaZulu-Natal Progressive Primary Health Care Implementing

Cape Craft and Design Institute Implementing

Current quarter Inception to date Contract total

Target Actual Target Actual Target Actual

New permanent jobs 50 85 307 381 451 381

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Project Status

National Council for Persons with Physical Disabilities: Job Placement Agency Implementing

The Small Enterprise Foundation Implementing

Careers for Youth with Disabilities in South Africa Implementing

Hand in Hand: Job Creation through Enterprise Development Implementing

Lima: Manzengwenya-Mbazwana Forestry Development Programme Implementing

Resource Africa: Rural-based Enterprise Empowerment and Employment Implementing

Heifer: Blouberg Agricultural Development Project Implementing

Newlands Mashu: Edamame Soybean Industry Establishment Implementing

Ubuntu Institute for Young Social Entrepreneurs Implementing

Swellendam Tourism Rural Empowerment Partnership Implementing

Siyazisiza Craft Development Programme Implementing

Phakamani: Creating Micro Jobs for Rural Women Implementing

Clothing Bank National Expansion Implementing

Shanduka Black Umbrellas Pretoria Incubator Implementing

Sabi Sand: Rural SMMEs’ Development and Employment Creation Implementing

Africa Ignite: Tourist Markets Ignite Rural Enterprise Implementing

Timbali: 300 SMMEs in Commercial Agri-parks Implementing

Awethu Project Incubator Implementing

Anglo American Implementing

Mondi Zimele Implementing

Akwandze Agricultural Finance: Small-scale Sugarcane Irrigation Infrastructure Capitalisation Project Implementing

SAWC: Unlocking Community Benefits through Conservation Implementing

Curafin: Owner Driver Programme Implementing

Microsoft Student-to-Business Programme Implementing

Microsoft BizSpark Programme Implementing

Building a Learning Academy Implementing

Claremont Farming: AgriBEE Agro-processing Linkage Project Implementing

Hot Dog Café Cadet Programme Implementing

The Cape Flats Business Hub Implementing

South African Franchising Warehouse: Business Partners Implementing

A2Pay: Community Access to Wireless Retail Technologies Implementing

Eksteenskuil Raisin Incubator Implementing

Milk SA: Sustainable Commercialisation Smallholder Dairy Implementing

Programme for Industrial and Manufacturing Excellence Implementing

Diepsloot Industrial Development Zone Implementing

Just Veggies: VegFresh and Frozen Vegetable Supply Chain Implementing

Atlantic: Guarantee Mechanism to Crowd In Investors Implementing

Tongaat Hulett Sugarcane Development Initiative Implementing

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Project Status

Vumela Enterprise Development Fund Implementing

Orange Grove UHT and Recapitalisation Programme Implementing

Department of Trade and Industry: Monyetla Work-readiness Programme Implementing

South African National Biodiversity Institute Implementing

Amatola Water Learning Academy Implementing

Bioprocess and Product Development Centre Implementing

CoachLab Leadership Skills Development Programme Implementing

Coega Strategic Skills Development Programme Implementing

Nissan Investment Support Programme Implementing

Development of Cashmere Fibre Industry Implementing

Sisonke: Post-settlement Support Land Reform Projects Implementing

Metal Surface Treatment Plant Implementing

Department of Economic Development and Tourism: WSP Implementing

Department of Economic Development and Tourism: TDM Implementing

Department of Economic Development and Tourism: CapaCITi 1000 Implementing

Royal Fields Implementing

Department of Environmental Affairs: Natural Resources Management Programme: Eco-factories Project Implementing

Harambee: Youth Employment Accelerator Implementing

Heifer International South Africa: Thusanang Dairy Project Terminated

WDB Trust: Non-private Sector Enterprise Development Terminated

Enablis Entrepreneurial Network South Africa Terminated

Triple Trust: Manufacture/Distribution of Efficient Cookstoves Terminated

TEBA Limited: Mineworker and Ancillary Job Facilitation from TEBA Labour Pools Terminated

College of Sustainable Agriculture: Karoo Incubator Terminated

Detailed descriptions of the Jobs Fund’s projects are available online (https://www.gtac.gov.za/programmes-and-services/the-jobs-fund).

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PART C: FINANCIAL INFORMATION

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REPORT OF THE AUDITOR-GENERAL TO PARLIAMENT ON THE GOVERNMENT TECHNICAL ADVISORY CENTRE REPORT ON THE FINANCIAL STATEMENTS

Introduction

1. I have audited the financial statements of the Government Technical Advisory Centre set out on pages 90 to 111, which comprise the statement of financial position as at 31 March 2015, the statement of financial performance, statement of changes in net assets, cash flow statement and statement of comparison of budget and actual amounts for the year then ended, as well as the notes, comprising a summary of significant accounting policies and other explanatory information.

Accounting officer’s responsibility for the financial statements

2. The accounting officer is responsible for the preparation and fair presentation of these financial statements in accordance with South African Standards of Generally Recognised Accounting Practice (SA Standards of GRAP) and the requirements of the Public Finance Management Act of South Africa, 1999 (Act No.1 of 1999) (PFMA), and for such internal control as the accounting officer determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

Auditor-General’s responsibility

3. My responsibility is to express an opinion on these financial statements based on my audit. I conducted my audit in accordance with International Standards on Auditing. Those standards require that I comply with ethical requirements, and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

4. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgement, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

5. I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my audit opinion.

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Opinion

6. In my opinion, the financial statements present fairly, in all material respects, the financial position of the Government Technical Advisory Centre as at 31 March 2015 and its financial performance and cash flows for the year then ended, in accordance with the SA Standards of GRAP and the requirements of the PFMA.

Emphasis of matter

7. I draw attention to the matter below. My opinion is not modified in respect of this matter.

Financial reporting framework

8. As disclosed in note 1.1 to the financial statements, the government component was granted a departure in terms of section 79 of the PFMA. In this regard, the government component was allowed to depart from the requirements of the Treasury Regulations in respect of its preparation of the financial statements by preparing it in accordance with the SA Standards of GRAP as opposed to the Modified Cash Standard.

REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS

9. In accordance with the Public Audit Act of South Africa, 2004 (Act No. 25 of 2004) and the general notice issued in terms thereof, I have a responsibility to report findings on the reported performance information against predetermined objectives for selected subprogrammes presented in the annual performance report, non-compliance with legislation and internal control. The objective of my tests was to identify reportable findings as described under each subheading but not to gather evidence to express assurance on these matters. Accordingly, I do not express an opinion or conclusion on these matters.

Predetermined objectives

10. I performed procedures to obtain evidence about the usefulness and reliability of the reported performance information for the following selected subprogrammes presented in the annual performance report of the government component for the year ended 31 March 2015:

Subprogramme 1: Technical Support and Development Finance Programme Management on pages 146 to 147.

Subprogramme 2: Government Technical Advisory Centre on pages 147 to 149.

Subprogramme 3: Local Government Financial Management Support on pages 149 to 150.

Subprogramme 4: Urban Development Support on pages 151 to 152.

Subprogramme 5: Employment Creation Facilitation on pages 152 to 154.

Subprogramme 6: Infrastructure Development Support on page 155.

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11. I evaluated the reported performance information against the overall criteria of usefulness and reliability.

12. I evaluated the usefulness of the reported performance information to determine whether it was presented in accordance with the National Treasury’s annual reporting principles and whether the reported performance was consistent with the planned subprogrammes. I further performed tests to determine whether indicators and targets were well defined, verifiable, specific, measurable, time bound and relevant, as required by the National Treasury’s Framework for managing programme performance information (FMPPI).

13. I assessed the reliability of the reported performance information to determine whether it was valid, accurate and complete.

14. The material findings in respect of the selected subprogrammes are as follows:

Subprogramme 1: Technical Support and Development Finance Programme Management

Usefulness of reported performance information

15. Performance targets were not specific in clearly identifying the nature and required level of performance, and were not measurable, as required by the FMPPI.

16. Performance indicators were not clearly defined so that data can be collected consistently and is easy to understand and use. Performance indicators were also not verifiable.

17. The measurability of planned targets and indicators could not be assessed due to the indicator definitions not addressing the nature and required level of performance clearly.

Reliability of reported performance information

18. The FMPPI requires auditees to have appropriate systems to collect, collate, verify and store performance information to ensure valid, accurate and complete reporting of actual achievements against planned objectives, indicators and targets. Significantly important targets were not reliable when compared to the source information or evidence provided. This was due to the fact that proper indicator definitions were not used to predetermine the evidence and method of calculation for actual achievements.

Subprogramme 2: Government Technical Advisory Centre


19. Performance targets should be specific in clearly identifying the nature and required level of performance as required by the FMPPI. A total of 25% (>20%) of the targets were not specific.

20. This was because management did not adhere to the requirements of the FMPPI.

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21. The FMPPI requires auditees to have appropriate systems to collect, collate, verify and store performance information to ensure valid, accurate and complete reporting of actual achievements against planned objectives, indicators and targets. Significantly important targets were not reliable when compared to the source information or evidence provided. This is due to the fact that proper indicator definitions were not used to predetermine the evidence and method of calculation for actual achievements.

Subprogramme 3: Local Government Financial Management Support


22. Performance targets should be specific in clearly identifying the nature and required level of performance as required by the FMPPI. A total of 25 per cent (>20 per cent) of the targets were not specific.

23. This was because management did not adhere to the requirements of the FMPPI.


24. The FMPPI requires auditees to have appropriate systems to collect, collate, verify and store performance information to ensure valid, accurate and complete reporting of actual achievements against planned objectives, indicators and targets. Significantly important targets were not reliable when compared to the source information or evidence provided. This is due to the fact that proper indicator definitions were not used to predetermine the evidence and method of calculation for actual achievements.

25. I did not identify any material findings on the usefulness and reliability of the reported performance information for the following programme:

Subprogramme 4: Urban Development Support

Subprogramme 5: Employment Creation Facilitation

Subprogramme 6: Infrastructure Development Support.

ADDITIONAL MATTERS

26. Although I identified no material findings on the usefulness and reliability of the reported performance information for the selected subprogrammes, I draw attention to the following matters:

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ACHIEVEMENT OF PLANNED TARGETS

27. Refer to the annual performance report on pages 139 to 148 for information on the achievement of planned targets for the year.

ADJUSTMENT OF MATERIAL MISSTATEMENTS

28. I identified material misstatements in the annual performance report submitted for auditing on the reported performance information for subprogramme 1: Technical Support and Development Finance Programme Management; subprogramme 2: Government Technical Advisory Centre; subprogramme 3: Local Government Financial Management Support; subprogramme 4: Urban Development Support; subprogramme 5: Employment Creation Facilitation; and subprogramme 6: Infrastructure Development Support. As management subsequently corrected only some of the misstatements I identified material findings on the usefulness and reliability of the reported performance information.

UNAUDITED SUPPLEMENTARY INFORMATION

29. The supplementary information set out on page 145 (Gautrain Loan) does not form part of the annual performance report and is presented as additional information. I have not audited this information and, accordingly, I do not report thereon.

COMPLIANCE WITH LEGISLATION

30. I performed procedures to obtain evidence that the government component had complied with applicable legislation regarding financial matters, financial management and other related matters. My findings on material non-compliance with specific matters in key legislation, as set out in the general notice issued in terms of the PAA, are as follows:

STRATEGIC PLANNING AND PERFORMANCE MANAGEMENT

31. A strategic plan for 2014–2016 was not prepared by the Minister of Finance as required by Treasury Regulation 5.1.1.

32. The strategic plan and annual performance plan were not provided to Parliament to facilitate the annual discussion as required by Treasury Regulation 5.2.1.

ANNUAL FINANCIAL STATEMENTS, PERFORMANCE AND ANNUAL REPORTS

33. The financial statements submitted for auditing were not prepared in all material respects in accordance with the requirements of section 40(1) of the PFMA. The auditors identified material misstatements in the submitted financial statements in respect of various disclosure notes, which management subsequently corrected resulting in the financial statements receiving an unqualified audit opinion.

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INTERNAL CONTROL

34. I considered internal control relevant to my audit of the financial statements, annual performance report and compliance with legislation. The matters reported below are limited to the significant internal control deficiencies that resulted in the findings on non-compliance with legislation included in this report.

LEADERSHIP

35. The oversight processes implemented by management in respect of financial and performance information were inadequate, resulting in non-compliance.

FINANCIAL AND PERFORMANCE MANAGEMENT

36. Management did not prepare performance information that could be assessed for usefulness and reliability.

Pretoria

31 July 2015

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ANNUAL FINANCIAL STATEMENTS

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Government Technical Advisory Centre (GTAC) Financial Statements for the year ended 31 March 2015 Index

The reports and statements set out below comprise the financial statements: Index Statement of Financial Position Statement of Financial Performance Statement of Changes in Net Assets Cash Flow Statement Statement of Comparison of Budget and Actual Amounts Accounting Policies Notes to the Financial Statements The financial statements set out on pages 3 to 22, which have been prepared on the going concern basis, were approved by the accounting authority on 29 May 2015 and were signed on its behalf by:

Andrew Donaldson Accounting Officer

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Statement of Financial Position as at 31 March 2015

Notes 2015

Assets Non-Current Assets Property, plant and equipment 4 305 636

305 636 Current Assets Receivables from exchange transactions 5 13 567 135 Cash and cash equivalents 6 1 151 872 975

1 165 440 110

Total Assets 1 165 745 746

Liabilities Current Liabilities Trade and other payables under exchange transactions 7 120 463 584 Payables under non-exchange transactions 8 227 120 996 Provisions 9 1 292 334 Total Liabilities 348 876 914 Net Assets 816 868 832

Accumulated surplus 816 868 832 Net Assets 816 868 832

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Statement of Financial Performance Notes 2015 Revenue Revenue from exchange transactions Cost Recovery Revenue 10 51 945 675 IPPPP RFP access fee Revenue 11 5 890 200 Investment revenue 12 37 948 817 Total revenue from exchange transactions 95 784 692 Revenue from non-exchange transactions Appropriated Funding 13 105 054 613 Donor Funding 14 34 443 889 IPPPP Project Development Fee Revenue 11 550 940 780 Total revenue from non-exchange transactions 690 439 282 Total revenue 786 223 974

Expenditure Goods and Services 15 530 440 584 Compensation of Employees 16 35 059 992 Depreciation/amortisation and impairment 4 24 968 Total expenditure 565 525 544

Surplus for the year 220 698 430

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Statement of Changes in Net Assets Note Reserves

Balance at 1 April 2014 - Net Assets transferred on 1 April 2014 28 596 170 402 Net Surplus for the year ended 31 March 2015 220 698 430

Balance at 31 March 2015 816 868 832

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Cash Flow Statement Note 2015 Cash flows from operating activities Receipts Government funding and other sources 1 056 657 331 Interest income 17 33 606 970

1 090 264 301 Payments Grants and project payments 603 788 266 Compensation to employees 33 767 658 637 555 924 Net cash flows from operating activities 18 452 708 377 Purchase of property, plant and equipment 4 (330 603) Net cash flows from investing activities (330 603)

Net increase in cash and cash equivalents 452 377 774 Cash and cash equivalents at the beginning of the year - Cash and cash equivalents - Transfer of functions 28 699 495 201 Cash and cash equivalents at the end of the year 6 1 151 872 975

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Statement of Comparison of Budget and Actual Amounts

Approved budget Actual Variance

Over / (Under) Notes

Statement of Financial Performance

Revenue Revenue from exchange transactions Cost Recovery Revenue 35 582 257 51 945 675 16 363 418 23 IPP RFP access fee Revenue - 5 890 200 5 890 200 23 Investment revenue 1 920 000 37 948 817 36 028 817 23 Total revenue from exchange transactions 37 502 257 95 784 692 58 282 435

Revenue from non-exchange transactions Appropriated Funding 242 417 127 105 054 613 (137 362 514) 23 Donor Funding 65 219 218 34 443 889 (30 775 329) 23 IPP Project Development Fee Revenue 216 000 000 550 940 780 334 940 780 Total revenue from non-exchange transactions 523 636 345 690 439 282 166 802 937 Total revenue 561 138 602 786 223 974 225 085 372

Expenditure Goods and Services 506 295 106 530 440 584 24 145 478 23 Compensation of employees 52 472 170 35 059 992 (17 412 177) 23 Depreciation/amortisation and impairment 2 371 000 24 968 (2 346 032) 23 Total expenditure 561 138 276 565 525 544 4 387 268 Surplus for the year 326 220 698 430 220 698 104

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Accounting Policies

1. Significant Accounting Policies 1.1 Presentation of Financial Statements GTAC is established as a Government Component in terms of the Public Services Act and as such is required to prepare the financial statements in accordance with Modified Cash Basis. GTAC has obtained a departure from the Accountant General from Modified Cash and hence the financial statements have been prepared in accordance with the Standards of Generally Recognised Accounting Practice (GRAP), issued by the Accounting Standards Board in accordance with Section 91(1) of the Public Finance Management Act (Act 1 of 1999). These financial statements have been prepared on an accrual basis of accounting and are in accordance with historical cost convention as the basis of measurement, unless specified otherwise. A summary of the accounting policies, which have been applied in the preparation of these financial statements are disclosed below. 1.2 Presentation Currency These financial statements are presented in South African Rand, which is GTAC's functional currency. Amounts are rounded to the nearest Rand. 1.3 Going Concern These financial statements have been prepared based on the expectation that GTAC will continue to operate as a going concern for at least the next 12 months. 1.4 Property, plant and equipment Property, plant, and equipment are carried at cost less accumulated depreciation and any impairment losses. Property, plant and equipment are depreciated on the straight line basis over their expected useful lives to their estimated residual value. The useful lives of items of property, plant and equipment have been assessed as follows: Item Average useful life Office equipment 5 years Computer equipment 3 years The residual value, the useful life and depreciation method of each asset are reviewed at least at each reporting date. If the expectations differ from previous estimates, the change is accounted for as a change in accounting estimate. Reviewing the useful life of an asset on an annual basis does not require the entity to amend the previous estimate unless expectations differ from the previous estimate. The gain or loss arising from the derecognition of an item of property, plant and equipment is included in surplus or deficit when the item is derecognised. The gain or loss arising from the derecognition of an item of property, plant and equipment is the difference between the net disposal proceeds, if any, and the carrying amount of the item. Where the carrying amount of an item of property, plant and equipment is greater than its estimated recoverable service amount, it is written down immediately to its recoverable amount (i.e. impairment losses are recognised).

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1.5 Financial Instruments Initial recognition GTAC recognises a financial asset or a financial liability in its statement of financial position when it becomes a party to the contractual provisions of the instrument. Financial assets All financial assets are categorised as loans and receivables. The classification depends on the nature and purpose of the financial assets and is determined at the time of initial recognition. Cash and cash equivalents Cash and cash equivalents are stated at amortised cost, which, due to their short-term nature, closely approximate their fair value. Financial assets at amortised cost Trade receivables, loans, and other receivables that have fixed or determinable payments that are not quoted in an active market are classified as 'financial assets at amortised cost'. These financial assets are measured at amortised cost using the effective interest method less any impairment. Interest income is recognised by applying the effective interest rate. Effective interest method The effective interest method is a method of calculating the amortised cost of a financial asset and of allocating interest income over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset, or, where appropriate, a shorter period. Impairment of financial assets Financial assets are assessed for indicators of impairment at each year-end. Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows of the investment have been impacted. For financial assets carried at amortised cost, the amount of the impairment is the difference between the asset's carrying amount and the present value of estimated future cash flows, discounted at the original effective interest rate. The carrying amount of the financial asset is reduced by the impairment loss directly for all financial assets with the exception of trade receivables where the carrying amount is reduced through the use of an allowance account. When a trade receivable is uncollectible, it is written off against the allowance account. Subsequent recoveries of amounts previously written off are credited against the allowance account. Changes in the carrying amount of the allowance account are recognised in the surplus or deficit. Financial liabilities All financial liabilities of GTAC are recognised at amortised cost. The classification of financial liabilities depends on their nature and purpose and is determined at the time of initial recognition. Other financial liabilities Other financial liabilities are initially measured at fair value, net of transaction costs. Other financial liabilities are subsequently measured at amortised cost using the effective interest method, with interest expense recognised on an effective yield basis. The effective interest method is a method of calculating the amortised cost of a financial liability and of allocating interest expense over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash payments through the expected life of the financial liability, or, where appropriate, a shorter period.

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1.6 Tax No provision has been made for taxation, as GTAC is exempt from income tax in terms of Section 10 of the Income Tax Act, 1962 (Act 58 of 1962). 1.7 Employee benefits The cost of employee benefits is recognised during the period in which the employee renders the related service. Employee entitlements are recognised when they accrue to employees. A provision is made for the estimated liability as a result of services rendered by employees up to the reporting date. Termination benefits are recognised and expensed only when the payment is made. Liabilities for annual service bonus and long service bonus are recognised as they accrue to employees. The entity recognises these bonus obligation during the vesting period based on the best available estimate of these bonuses expected to vest. 1.8 Revenue from Exchange Transactions Revenue from exchange transactions is recognised when it is probable that future economic benefits or service potential will flow to the entity and these benefits can be measured reliably. Revenue is measured at the fair value of the consideration received or receivable. 1.8.1 Cost Recovery Revenue Revenue for services rendered is recognised as cost recovery revenue when it is associated with identified services provided to a client or counterparty, the costs incurred in providing these services can be reliably measured, the stage of completion of the services at the end of the reporting period can be determined and the costs and revenue can be appropriately apportioned between completed and to-be-completed services. 1.8.2 IPP RFP access fee Revenue Receipts received by the Independent Power Producer (IPP) programme from private parties are accounted for as exchange revenue when the receipts are measured reliably and identified economic benefits associated with the receipts flow to the private party. 1.8.3 Investment Revenue Investment Revenue is Interest income that accrues on a time-proportionated basis, taking into account the principal amount outstanding and the effective interest rate over the period to maturity. 1.9 Revenue from Non-Exchange Transactions

Non-exchange revenue transactions result in resources being received by GTAC, usually in accordance with a binding arrangement. When GTAC receives resources as a result of a non-exchange transaction, it recognises an asset and revenue in the period that the arrangement becomes binding and when it is probable that the entity will receive economic benefits or service potential and it can make a reliable measure of the resources transferred. Where the resources transferred to the entity are subject to the fulfilment of specific conditions, it recognises an asset and a corresponding liability. As and when the conditions are fulfilled, the liability is reduced and revenue is recognised. The asset and the corresponding revenue are measured on the basis of the fair value of the asset on initial recognition.

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1.9.1 Appropriated Funding This is revenue received as a transfer through national budget allocation. It is utlised for the operations of the GTAC. GTAC is required to return the funds to National Treasury at the end of the financial year, but requests to retain the funds annually to support future commitments. The amount allocated is measured reliably and it is probable that the economic benefits associated with the funds will flow to the entity. It is recognised immediately on receipt. 1.9.2 Donor Funding Donor funds are recognised when the funds can be measured reliably on the date the draw-down requisition becomes effective and the cost associated with the revenue has been incurred. The funds transferred are subject to the fulfilment of specific conditions, an asset and a corresponding liability is recognised. As and when the conditions are fulfilled, the liability is reduced and revenue is recognised. 1.9.3 IPP Project Development Fee Revenue IPP Project Development Fees is calculated as 1% of the project value for the bidder to go to the next phase. This amount is is non-refundable, there are no conditions attached and therefore recognised on receipt. 1.10 Comparative Figures There are no comparatives for the financial year as GTAC became operational on 1 April 2014. 1.11 Fruitless and Wasteful Expenditure

Fruitless expenditure means expenditure which was made in vain and would have been avoided had reasonable care been exercised. All expenditure relating to fruitless and wasteful expenditure is recognised as an expense in the statement of financial performance in the year that the expenditure was incurred. The expenditure is classified in accordance with the nature of the expense, and where recovered, it is subsequently accounted for as revenue in the statement of financial performance. 1.12 Irregular Expenditure Irregular expenditure as defined in section 1 of the PFMA is expenditure other than unauthorised expenditure, incurred in contravention of or that is not in accordance with a requirement of any applicable legislation, including - (a) this Act; or (b) the State Tender Board Act, 1968 (Act No. 86 of 1968), or any regulations made in terms of the Act; or (c) any legislation providing for procurement procedures. 1.13 Related Parties

The entity is related to other entities and departments in all spheres of government. The transactions are consistent with normal operating relationships between the entities, and are undertaken on terms and conditions that are normal for such transactions.

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1.14 Significant Judgments, Estimates and Assumptions

The preparation of annual financial statements requires management to make judgments, estimates and assumptions that affect the application of policies and the reported amounts of assets and liabilities, revenue and expenses. Estimates are made based on the best available information at the time of preparation of the Annual Financial Statements. The estimates and underlying assumptions are reviewed on an on-going basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period or in the period of the revision on future periods if the revision affects current and future periods.

1.15 Public Sector Practices and Policies Inter-relationship with other government entities

GTAC has been establised as a government component, with National Treasury as its Principal.

Public Finance Management Act reporting requirements

Section 55(2)(b) No material losses occurred during the current financial year due to criminal conduct nor any unauthorised expenditure or irregular expenditure.

1.16 Events after Reporting Date

Events after the reporting date are those events, both favourable and unfavourable, that occur between the reporting date and the date when the financial statements are authorised for issue. Two types of events can be identified: (a) Those that provide evidence of conditions that existed at the reporting date (adjusting events after the reporting date); and (b) Those that are indicative of conditions that arose after the reporting date (non-adjusting events after the reporting date)

1.17 Budgets

A comparison of the budget estimates for GTAC's programmes and activities and the realised outcome (actual) amounts is included in the financial statements.

The comparison of budget and actual amounts shows: (a) Approved and final budget amounts; (b) Actual amounts on a comparable basis; and (c) By way of note disclosure, an explanation of material differences between budget estimates and actual amounts.

1.18 Transfers under Common Control

Several functions were transferred to GTAC on the 1 April 2014 by National Treasury, which is GTAC's principal department. With effect on this date the National Treasury: (a) Derecognised in its financial statements, all the assets transferred and liabilities relinquished at their carrying amounts. (b) Recognised the difference between the carrying amounts of the assets transferred and the liabilities relinquished in its accumulated surplus or deficit.

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1.19 Contingent Liabilities and Provisions

A contingent liability is: (a) A possible obligation arising from past events, to be confirmed by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the entity; or (b) A present obligation that arises from past events but is not recognised because: i. It is not probable that an outflow of resources embodying economic benefits or service potential will be required to settle the obligation; or ii. The amount of the obligation can not be measured with sufficient reliability.

Contingent liabilities are not recognised in the financial statements, but are disclosed in the notes.

Provisions are recognised when: (a) GTAC has a present obligation as a result of past events (b) it is probable that an outflow of economic benefits will be required to settle the obligation © a reliable estimate can be made of the obligation.

1.20 Commitments

A commitment is a future expense for which GTAC is contractually liable, but in respect of which a payment obligation has not yet been incurred at the reporting date.

Commitments are not recognised in the financial statements, but are disclosed in the notes.

1.21 Segment Reporting

GTAC's financial statements are set out in segments: - (1) in view of the separate nature and financial effects of its main activities and their associated economic environments (2) in order to disclose the separate resource allocations and associated governance arrangements for these activities; and (3) to support transparency of financial reporting and discharge of GTAC's accountability obligations.

A segment is an activity of an entity: (a) that generates economic benefits or service potential (including economic benefits or service potential relating to transactions between activities of the same entity); (b) whose results are regularly reviewed by management to make decisions about resources to be allocated to that activity and in assessing its performance; and (c) for which separate financial information is available. (c) for which separate financial information is available.

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Notes to the Financial Statements 2015

2. General Information The Government Technical Advisory Centre (GTAC) has been established as a government component in terms of the Public Services Act ,by Proclamation promulgated by the President of South Africa.

The object of the GTAC is to assist Organs of State in building their capacity for efficient, effective and transparent financial

management. The functions of GTAC are: (a) to render technical consulting services to Centre of Government Departments and Organs of State;

(b) to provide specialised procurement support for high-impact government initiatives; (c) to render advice on the feasibility of infrastructure projects; (d) to provide knowledge management for projects undertaken; and (e) anything ancillary to the functions 3. New Standards and Interpretations 3.1 Standards Issued, but not yet effective At the date of authorisation of these financial statements, there are standards and interpretations in issue but not yet effective.

These include the following standards and interpretations that are applicable to the entity and may have an impact on future

financial statements: Standard/ Interpretation:

Effective date: Expected impact: Years beginning on or after

• GRAP 105: Transfers of functions between entities under common control

Not yet effective This standard establishes the accounting principles for the acquirer and transferor in a transfer of functions between entities under common control.

A transfer of functions is the reorganisation and/or the re-allocation of functions between entities by transferring functions between entities or into another entity.

Entities have transferred from their original being to GTAC. It is expected that this standard will impact the disclosures of these

financial statements.

• GRAP 20: Related Not yet effective This standard prescribes the disclosure of information relevant to draw attention to the possibility that the entity's financial position and surplus / deficit may have been affected by the existence of related parties. It is not expected that this standard will significantly impact future disclosures.

parties

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• GRAP 18: Segment Reporting

Not yet effective This standard enable users of the financial statements to better understand the GTAC’s past performance, to evaluate the nature and financial effects of the activities in which it engages and the economic environments in which it operates

It is not expected that this standard will significantly impact

future disclosures.

3.2 Standards not yet effective or relevant The following standards and interpretations that have been issued but are not yet effective are not applicable to the entity and will not have an impact on future financial statements: Standard/ Interpretation: Effective

date: Expected impact:

Years beginning on or after

No significant impact on future disclosures

• GRAP 32: Service Concession Arrangements: Grantor Not yet effective

No significant impact on future disclosures

• GRAP 106: Transfers of functions between entities not Not yet

effective No significant impact

on future disclosures under common control • GRAP 107: Mergers Not yet


on future disclosures • GRAP 108: Statutory Receivables Not yet


on future disclosures

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4. Property, plant and equipment

2015 Cost Accumulated Carrying

value depreciation

Office furniture and fittings

- - -

Office equipment 51 091 6 206 44 886 Computer equipment

279 512 18 762 260 750

Leasehold improvements

- - -

Total 330 603 24 968 305 636

Reconciliation of property, plant and equipment - 2015

Opening

balance Additions Disposals Depreciation Total

Office furniture and fittings - - - - - Office equipment - 51 091 - 6 206 44 886 Computer equipment - 279 512 - 18 762 260 750 Leasehold improvements - - - - - - 330 603 - 24 968 305 636 5. Receivables from Exchange Transactions

Trade Receivables 5 719 507 VAT receivable 1 285 455 Interest receivable 6 562 173 13 567 135

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6. Cash and Cash Equivalents Cash and cash equivalents consist of:

Bank Accounts: - Government Technical Advisory Centre (GTAC)

206 998

- Building a Capable State (BCS)

1 433

- Project Development Facility (PDF) 1 433 - Neighbourhood Development Programme (NDP) 1 500 - Independent Power Producers Procurement Programme (IPPPP) 1 433 212 797 Call Accounts: - GTAC 221 744 289

- BCS 11 281 745 - PDF 136 260 176 - NDP 69 707 395

- IPPPP 712 666 573 1 151 660 178 Total Cash and cash equivalents 1 151 872 975 Cash and cash equivalents comprise cash held by GTAC and short-term bank deposits on call. The carrying amount of these assets approximates their fair values.

During 2014/15 funds were invested in call accounts with Nedbank to maximise the interest earned.

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7. Trade and other Payables under Exchange Transactions

Trade payables 35 906 586 Income received in advance - Cost Recovery GTAC

-GTAC 7 556 998

-PDF 77 000 000 120 463 584 The carrying amount of trade and other payables approximate their fair value due to the relatively short-term maturity of these financial liabilities.

8. Payables under Non-Exchange Transactions Income received in advance - GTAC 81 159 447 - Municipal Financial Improvement Programme

II (MFIP) 87 831 432

- NDP 58 014 113 Interest received on Donor funds 116 004 227 120 996 9.Provisions Provisions for Leave 701 089 Provisions for Bonuses 591 245 1 292 334 Reconciliation of employee provisions - 2015 Opening

balance Provided Utilised Total

Leave provision - 701 089 701 089 Bonus provision - 591 245 591 245 - 1 292 334 - 1 292 334 10. Cost Recovery Revenue Technical assistance Various 46 159 341 Infrastructure Delivery Improvement Programme (IDIP) 5 786 334 51 945 675 11. Independent Power Producers (IPP) Revenue IPPPP RFP access fee Revenue Large Renewable Energy RFP (Request for Proposals) 405 500 Small Renewable Energy 85 000 Coal 5 399 700 5 890 200

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IPPPP Project Development Fee Revenue

Large Renewable Energy projects 476 705 555 Peaking Power Plants 74 235 225 550 940 780 Total IPPPP Revenue 556 830 980 12. Investment Revenue Interest 37 948 817 37 948 817

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13 Appropriated Funding (National Treasury vote) Government Technical Advisory Centre (GTAC) 79 752 000 Project allocations: Municipal Finance Improvement Programme II (MFIP) 10 956 569 Neighbourhood Development Programme

(NDP) 14 346 044

105 054 613 14. Donor Funding General Budget Support (GBS) 19 642 539 - funding from the European Union through National Treasury for institutional transformation "Building a Capable State" (BCS) 14 801 350 - funding from the Canadian department of Foreign Affairs ,Trade and development 34 443 889 15. Goods and Services Accounting fees 184 634 Administrative fees 94 474 Advertising 169 062 Assets less than capitalisation threshold and maintenance

37 483

Audit fees 713 176 Bank Charges 20 723 Bursaries 98 541 Catering 72 721 Communications 126 216 Computer services 1 820 Consumables and maintenance 260 570 Entertainment 6 999 Licence Fees 18 785 Losses and Damages 48 114 Operating payments 21 098 Project expenditure - BCS 14 801 350 Project expenditure - GTAC 78 086 377 Project expenditure - IDIP 5 786 334 Project expenditure - MFIP(ii) 10 956 569 Project expenditure - NDP 14 346 045 Project expenditure - NDP internal 456 164 Project expenditure - PDF 3 877 531 Subscriptions 245 910 Training 141 497 Travel and subsistence 1 528 226 Venues and facilities 37 174 132 137 593 Project expenditure - IPP 398 302 991 530 440 584

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16. Compensation of Employees Salaries and Wages 19 677 728 UIF, Pensions and Medical Aid 2 729 048 Performance and other bonuses 2 935 865 Other employee related costs 830 347 Non pensionable and housing allowances 8 887 004 35 059 992

17. Investment Income

Interest income at the beginning of the year

2 220 326

Net investment income received per the Statement of Financial Performance

37 948 817

Accrued net interest income at the end of the year (6 562 173)

33 606 970

18. Net cash flows from operating activities Surplus for the year 220 698

430 Adjustments for: Depreciation 24 968 Increase in Salary provisions 1 292 334 Increase in accruals

24 932 222

Increase in Income received in advance

311 561 990

-under Exchange transactions 84 556 998

-under Non-Exchange transactions 227 004 992

Changes in working capital (Increase) in receivables from exchange transactions

(13 567 135)

Increase in payables under exchange transactions

10 974 363

Increase in payables under non-exchange transactions

116 004

Transfer of functions - Net assets and liabilities (103 324 799)

452 708 377

19. Commitments Project Commitments

Accumulated surplus

816 868 832

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Current commitments will be funded from the accumulated surplus as well as from future government grants, cost recovery and donor funds.

Operating Commitments

Payable within the next 12 months - Contractual commitments 127 625 209

Payable after 12 months but before 60 months - Contractual commitments 33 889 797

Payable after 60 months -

20. Related Parties During the financial year, GTAC entered into various transactions with related parties. Relationship National Treasury is the Principal entity to GTAC.

Related party balances Receivables Department of Public Works 4 152 592 Department of Communications 649 520 Department of Science and Technology 277 288 National Treasury 640 107

5 719 507

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Payables Development Bank of South Africa 25 538 757 National Treasury 145 762

25 684 519 Other payables

National Treasury -GTAC 7 556 998

-Employment Creation Facilitation Programme

50 098 983

-Municipal Finance Improvement Programme II

87 831 432

-Neighbourhood Development Programme 58 014 113 Department of Public Works 77 000 000

280 501 526

These funds have been committed against projects

Related party transactions Funding provided by relating parties National Treasury -GTAC 79 752 000 -Employment Creation Facilitation

Programme 28 300 000

-Municipal Finance Improvement Programme II

98 788 000

-Neighbourhood Development Programme 30 000 000 Department of Public Works 77 000 000 313 840

000 Revenue received for services provided

Department of Communications 7 471 711 Department of Co-operative Governance & Traditional Affairs

44 770

Department of Home Affairs 3 949 672 Department of Human settlements 60 000 Department International Relations and Co-operation (DIRCO) 662 607 Department of Provincial Planning and Treasury EC 857 892 Department of Public Service Administration

1 171 056

Department of Public Works 4 152 592 Department of Science and Technology 277 288 Ditsong Museums SA 204 457 Eastern Cape Department of Sport , Recreation, Art and culture 1 317 237 Manufacturing and engineering related Services Sector Education and Training Authority (MERSETA) 139 576 National Treasury 20 747 156 Office of the Health Standards compliance 2 795 327 Office of the Premier - Eastern Cape 433 090 Office of the Premier - Kwazulu Natal 113 686 Public Service Education and Training Authority (PSETA) 256 873 Quality Council for Trade and Occupation 20 870

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Safety and Security Sector Education and Training Authority (SASSETA) 554 187 South African National Bio diversity institution 2 184 177 The Presidency 4 531 451

51 945 675

Expenses paid Development Bank of South Africa 398 909 526 398 909 526 Services rendered at no cost Financial Intelligence Centre 1 683 705 1 683 705 Services received at no cost Financial Intelligence Centre 90 728 National Treasury 2 109 360 2 200 088 These costs at fair value relates to office space occupied by GTAC. Key Management personnel No of Individuals Political office bearers 0 - Officials: Levels 15 to 16 0 - Levels 14 8 9 419 352 9 419 352

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21. Risk Management The focus of risk management in GTAC is on identifying, assessing, managing and monitoring all known forms of risk across the entity. While operating risk cannot be fully eliminated, management endeavours to minimise it by ensuring that the appropriate infrastructure, controls, systems and ethics are applied throughout the entity and managed within predetermined procedures and constraints. As GTAC acquires finance from the National Treasury Finance Department and does not have borrowed funds, it does not have major exposure to credit, liquidity, interest and market risk. Credit risk Credit risk is the risk that one party to a financial instrument will cause a financial loss for the other party by failing to meet an obligation. Credit risk arises from cash and cash equivalents, and deposits with banks and financial institutions, as well as outstanding receivables and committed transactions. For banks and financial institutions, only highly reputable financial institutions are used. Liquidity risk Liquidity risk is the risk that the entity will not be able to meet its financial obligations as they fall due. Ultimate responsibility for liquidity risk management rests with the National Treasury finance department, which has built an appropriate liquidity risk management framework for the management of the National Treasury's short, medium and long term funding and liquidity management requirements.

Interest rate risk GTAC has limited exposure to interest rate risk. GTAC's cash and cash equivalents are subject to interest rate risk for the portion of interest received. The interest rate risk is limited as funds are invested with one of the four major banks and this is assessed annually.

Market risk No significant market events occurred during the year that materially affected GTAC. GTAC's activities of mainly of an administrative or support service nature, with limited exposure to market movements.

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22. Events after the Reporting Date No material events after the reporting date. 23. Budget Differences Notes to Statement of Comparison of Budget and Actual amounts

Cost Recovery Revenue Over budget The number of consulting projects were under budgeted for as the consulting services is a demand driven industry. IPP RFP access fee Revenue Over budget The RFP fees were not budgeted for in this financial year. Investment revenue Over budget Higher inflows of revenue due to the receipt of IPP development fees being higher than budget. Appropriated Funding Under budget Administrative expenditure on the Jobs Fund Project Management Unit was initially mainly accounted for by National Treasury as a transfer to the DBSA. The Unit was transferred to GTAC during 2014/15 together with the associated expenditure. Donor Funding Under budget During the financial year, there were less projects funded from donor funds than budgeted for. IPP Project Development Fee Revenue Over budget Whereas the bid window for peaking power plants closed in prior period, the development fee revenue flowed in the current period. Goods and Services Over budget Increased transactional advisory expenditure for evaluations of proposals in the IPP as well as office overheads under budgeted in IPP. This overspend was funded by internal funds generated by the IPPP programme through project development funds received from successful bidders and was not an overspend on Voted funds. This is not a contravention of section 39(2)(a) of the PFMA. Compensation of employees Under budget Staff structure yet to be finalised before any new positions are created and recruited for. Depreciation/amortisation and impairment Under budget There has been less procurement of equipment assets than budgeted for during this financial year.

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24. Financial Instruments Categories of financial instruments 2015 Financial assets

At amortised Total cost

Receivables from exchange transactions 13 567 135 13 567 135 Cash and cash equivalents 1 151 872 975 1 151 872 975 1 165 440 110 1 165 440 110 Financial liabilities At amortised Total

cost Payables from exchange transactions 120 463 584 120 463 584 Trade and other payables from non-exchange transactions 227 120 996 227 120 996 347 584 580 347 584 580

25. Contingencies Accumulated surplus 816 868 832

In terms of the PFMA, all surplus funds as at the reporting date may be forfeited to the National Treasury. A request for the retention

26. Fruitless and Wasteful Expenditure

To the best of our knowledge no fruitless and wasteful expenditure have been incurred during the current year. 27. Irregular Expenditure To the best of our knowledge no irregular expenditure was incurred in the current year.

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28. Transfer of Functions between Entities under Common Control The following units functions were transferred to GTAC: 1. Technical Assistance Unit (TAU) 2. Private and Public Partnerships Unit (PDF) 3. National Capital Projects Unit 4. Jobs fund 5. Expenditure Performance Review The net assets transferred to GTAC was R596 170 403. TAU PDF Total Assets Current Assets Receivables from Exchange transactions 2 236 425 1 777 037 4 013 462 Receivables from Non-Exchange transactions 630 551 - 630 551 Cash and Cash Equivalents 80 398 229 619 096 972 699 495 201 83 265 205 620 874 009 704 139 214 Liabilities Current liabilities Payables under exchange transactions 29 441 941 3 569 110 33 011 051 Unspend government fund - 42 360 159 42 360 159 Other payables under non-exchange 32 597 602 - 32 597 602 62 039 543 45 929 269 107 968 812 Net assets 21 225 662 574 944 740 596 170 402

No consideration was paid by GTAC to National Treasury for these transfers of assets and relinquishment of liabilities.

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29. Segment Reporting GTAC's accounts are reported in two segments, in view of the separate management, resource allocation, and accountability arrangements for these two sets of activities. The first comprises GTAC's advisory and programme management activities, including the organisational units and functions transferred from the National Treasury. The second segment comprises the accounts of the Independent Power Producers Procurement Programme, which are administered by GTAC on behalf of the Department of Energy, National Treasury, and the IPPPP Office which is based at the Development Bank of Southern Africa. The IPPP Programme's revenue derives from fees raised through IPPP transactions, which are ring-fenced for meeting the administrative costs of the procurement programme and future contract management. The IPPPP revenue, expenditure, and accumulated funds are therefore reported and accounted for separately from GTAC's advisory and programme management services.

2015

GTAC Advisory and Programme

Management Services

Independent Power Producers

Procurement Programme

Total

Revenue Revenue from exchange transactions 51 945 675 5 890 200 57 835 875 Revenue from non-exchange transactions 139 498 502 550 940 780 690 439 282 Total segment revenue 191 444 177 556 830 980 748 275 157 Expenditure Goods and Services 132 137 593 398 302 991 530 440 584 Compensation of Employees 35 059 992 - 35 059 992 Depreciation/amortisation and impairment 24 968 - 24 968 Total segment expenditure 167 222 553 398 302 992 565 525 544 Total segmental surplus before interest 24 221 624 158 527 988 182 749 613 Interest revenue 12 868 080 25 080 737 37 948 817 Surplus for the period 37 089 704 183 608 725 220 698 430 Assets Segment Assets 448 408 014 717 032 096 1 165 440 110 Total Assets 448 408 014 717 032 096 1 165 440 110 Liabilities Segment Liabilities 322 652 358 24 932 222 347 584 580 Total Liabilities 322 652 358 24 932 222 347 584 580 Other Information Capital Expenditure* 305 636 Non cash items excluding depreciation - Accrued expenses - Deferred revenue - * Excluding additions to financial instruments and post-employment benefit assets

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PART D: HUMAN RESOURCES MANAGEMENT

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HUMAN RESOURCES OVERSIGHT: STATISTICAL INFORMATION EXPENDITURE

In 2014/15, GTAC’s activities were organised into five subprogrammes. The following tables summarise expenditure on personnel by programme (Table 14) and by salary band (Table 15), and also show expenditure on training and professional and special services.

Table 14: Personnel costs by programme, 2014/15

Percentage of average personnel cost per employee calculated based on the number of employees in Table 18, which excludes Jobs Fund employees (14).

Table 15: Personnel costs by salary band, 2014/15

Percentage of average personnel cost per employee calculated based on the number of employees in Table 25.

Programme

Total expenditure

Personnel expenditure

Training expenditure

Professional and special

services

Average personnel cost per employee

(R 000) (R 000) % of total (R 000) (R 000) (R)

Programme 8 Technical Support and Development Finance

41 778 33 707 0 0

80.6

674

Total 41 778 33 707 0 0

Salary band Personnel expenditure (R 000)

% of total personnel cost

Average personnel cost per employee

(R 000)

Lower skilled (levels 1–2) - - -

Skilled (levels 3–5) 209 0.6 209

Highly skilled production (levels 6–8) 3 228 9.6 269

Highly skilled supervision (levels 9–12) 12 223 36.3 582

Senior management (levels 13–16) 18 047 53.5 1128

Total 33 707 100.0 674

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The following tables provide a summary, per programme (Table 16) and salary band (Table 17), of expenditure incurred on salaries, overtime, home owners’ allowance and medical assistance. The tables also indicate the percentage breakdown of personnel expenditure.

Table 16: Salaries, overtime, home owners’ allowance and medical assistance by programme, 2014/15

Percentage of personnel cost of salaries, overtime, home owners’ allowance and medical assistance is calculated using the total personnel expenditure per programme in Table 18.

Table 17: Salaries, overtime, home owners’ allowance and medical assistance by salary band, 2014/15

Percentage of personnel cost of salaries, overtime, home owners’ allowance and medical assistance is calculated using the total personnel expenditure per programme in Table 18.

Programme Salaries Overtime Home owners’ allowance

Medical assistance

(R 000) % of total (R 000) % of

total (R 000) % of total (R 000) % of

total

Programme 8 19 678 58.38 0.00 0.00 164 0.49 391 1.16

Total 19 678 58.4 0 0.0 164 0.5 391 1.2

Salary band Salaries Overtime Home owners’ allowance Medical assistance

(R 000) % of total (R 000) % of

total (R 000) % of total (R 000) % of

total

Lower skilled (levels 1–2)

0 0 0 0 0 0 0 0

Skilled (levels 3–5) 146 69.6 0 0 11 5.2 9 4.1

Highly skilled production (levels 6–8)

2 276 70.5 0 0 54 1.7 170 5.3

Highly skilled supervision (levels 9–12)

7 082 57.9 0 0 17 0.1 90 0.7

Senior management (levels 13–16) 10 174 56.4 0 0 82 0.5 122 0.7

Total 19 678 58.4 0 0 164 0.5 391 1.2

P a g e | 122

EMPLOYMENT AND VACANCIES

The following tables summarise the number of GTAC posts, the number of employees, the vacancy rate and staff that are additional to the establishment. This information is presented by subprogramme (Table 18) and by salary band (Table 19). The vacancy rate reflects the percentage of posts that are not filled.

Table 18: Employment and vacancies by programme, 31 March 2015

Table 19: Employment and vacancies by salary band, 31 March 2015

Filling of senior management service posts

The tables in this section provide information on employment and vacancies for members of the senior management service by salary level. They also provide information on advertising and filling of senior management service posts, reasons for not complying with prescribed timeframes and disciplinary steps taken.

Programme Number of funded posts Headcount Vacancy rate %

Number of posts filled additional to the establishment

Programme 8 50 50 0 9

Total 50 50 0 9

Salary band Number of posts Headcount Vacancy rate %

Number of posts filled additional to the establishment


0 0 0 0

Skilled (levels 3–5)

1 1 0 0


12 12 0 3

Highly skilled supervision (levels 9–12) 21 21 0 5

Senior management (levels 13–16) 16 16 0 1

Total 50 50 0 9

P a g e | 123

Table 20: Senior management service post information, 31 March 2015

Table 21: Senior management service post information, 30 September 2014

Senior management service level

Total number of funded

senior management

service posts

Total number of senior

management service posts

filled

% of senior management

service posts filled


management service

posts vacant

% of senior management service posts

vacant

Director-General/ Head of Department

0 0 0 0 0

Salary level 16 0 0 0 0 0



Salary level 13 11 11 100 0 0

Total 16 16 100 0 0


Total number of funded

senior management

service posts


management service posts

filled

% of senior management

service posts filled


management service

posts vacant

% of senior management service posts

vacant


0 0 0 0 0




Salary level 13 13 13 100 0 0

Total 21 22 100 0 0

P a g e | 124

Table 22: Advertising and filling of senior management service posts, 1 April 2014 to 31 March 2015

Note: Positions were reported on in the National Treasury 2014/15 Annual Report.

Table 23: Reasons for not having complied with the filling of funded vacant senior management service posts advertised within six months and filled within 12 months of becoming vacant, for the period 1 April 2014 to 31 March 2015

Reasons for vacancies not advertised within six months

N/A

Reasons for vacancies not filled within 12 months

N/A

JOB EVALUATION

The Public Service Regulations (1999) introduced job evaluation to ensure that work of equal value is remunerated equally. Within a nationally determined framework, executing authorities may evaluate or re-evaluate any job in their organisations. In terms of the regulations, all vacancies on salary levels 9 and higher must be evaluated before they are filled.


Advertising Filling of posts

Number of vacancies advertised within six months of becoming

vacant

Number of vacancies filled within six months

of becoming vacant

Number of vacancies not filled within six months

but filled within 12 months


Salary level 16

Salary level 15

Salary level 14

Salary level 13

Total

P a g e | 125

Table 24 gives the number of jobs evaluated during the year under review. It also provides statistics on the number of posts upgraded or downgraded.

Table 24: Job evaluation, 1 April 2014 to 31 March 2015

Total 50 3 6 1 2 0 0

The following table gives the number of employees whose salary positions were upgraded when their posts were upgraded. The number of employees differs from the number of posts upgraded because not all employees are automatically absorbed into the new posts and some upgraded posts remained vacant.

Table 25: Profile of employees whose salary positions were upgraded due to their posts being upgraded, 1 April 2014 to 31 March 2015 Beneficiaries African Asian Coloured White Total

Female 1 0 0 0 1

Male 0 0 0 0 0

Employees with a disability 0 0 0 0 0

Total 1 0 0 0 1

Salary band Number

of posts

Number of jobs

evaluated

% of posts evaluated by salary

bands

Posts upgraded Posts downgraded

Number % of posts evaluated Number % of posts

evaluated

Lower skilled (levels 1–2) 0 0 0 0 0 0 0

Skilled (levels 3–5) 1 0 0 0 0 0 0


12 3 25 1 33 0 0


21 0 0 0 0 0 0

Senior management service band A 11 0 0 0 0 0 0

Senior management service band B 5 0 0 0 0 0 0

Senior management service band C 0 0 0 0 0 0 0

Senior management service band D 0 0 0 0 0 0 0

P a g e | 126

The following table shows the number of cases where remuneration levels exceeded the grade determined by job evaluation. The reasons for the deviation are provided in each case.

Table 26: Employees whose salary level exceeded the grade determined by job evaluation, 1 April 2014 to 31 March 2015 (in terms of PSR 1.V.C.3)

The table below describes the beneficiaries in terms of race, gender, and disability.

Table 27: Profile of employees whose salary level exceeded the grade determined by job evaluation, 1 April 2014 to 31 March 2015 (in terms of PSR 1.V.C.3)

Beneficiaries African Asian Coloured White Total

Female 5 0 2 1 8

Male 2 0 0 2 4

Total 7 0 2 3 12

Occupation Number of employees

Job evaluation level

Remuneration level Reason for deviation

Deputy Director-General 0 0 0 N/A

Chief Director 3 14 15 N/A

Director 3 1

13 13

14 15

N/A

Deputy Director 1 1

12 11

13 12

N/A

Assistant Director 0 0 0 N/A

Administrative level 2 1

7 7

8 9

N/A

Total number of employees whose salaries exceeded the level determined by job evaluation in 2014/15

12

Percentage of total employment 24%

P a g e | 127

EMPLOYMENT CHANGES

Changes in employment during 2014/15 are summarised below. Turnover rates provide an indication of trends in GTAC’s employment profile. The following table gives the turnover rates by salary band.

Table 28: Annual turnover rates by salary band, 1 April 2014 to 31 March 2015

Table 29: Reasons for staff leaving the department

Salary band

Number of employees per band as

on 31 March

2014

Appointments and transfers

into the department

Terminations and transfers

out of the department

Turnover rate %

Lower skilled (levels 1–2) 0 0 0 0

Skilled (levels 3–5) 0 1 0 0


0 14 1 0


0 23 3 0

Senior management service band A 0 10 0 0

Senior management service band B 0 6 0 0

Senior management service band C 0 0 0 0

Senior management service band D 0 0 0 0

Total 0 54 4 0

Termination type Number % of total

Death 0 0

Resignation 4 100

Expiry of contract 0 0

Dismissal – operational changes 0 0

Dismissal – misconduct 0 0

Dismissal – inefficiency 0 0

Discharged due to ill-health 0 0

Retirement 0 0

Severance package 0 0

Transfers to other public service departments 0 0

Total 4 100

Number of employees who left as a percentage of total employment (as at 31 March 2015) 8

P a g e | 128

Table 30: Promotions by salary band

EMPLOYMENT EQUITY

The tables in this section are based on the formats prescribed by the Employment Equity Act (1998).

Table 31: Total number of employees (including employees with disabilities) in each of the following occupational categories, 31 March 2015

Minister and Deputy Minister included in totals (legislators, senior officials and managers).

Salary band Employees

31 March 2014

Promotions to another salary level

Salary band promotions as a % of employees by

salary level


0 0 0

Skilled (levels 3–5)

0 0 0


0 1 0


0 0 0

Senior management (levels13–16)

0 1 0

Total 0 2 0

Occupational categories (SASCO)

Male Female

African Coloured Indian White African Coloured Indian White Total

Legislators, senior officials and managers 7 0 1 1 1 2 1 4 17

Professionals 1 0 0 2 10 0 0 5 18

Technicians and associate professionals 1 0 0 0 9 1 1 3 15

Clerks 0 0 0 0 0 0 0 0

Service and sales workers 0 0 0 0 0 0 0 0 0

Plant and machine operators and assemblers 0 0 0 0 0 0 0 0 0

Elementary occupations 0 0 0 0 0 0 0 0 0

Total 9 0 1 3 20 3 2 12 50

P a g e | 129

Table 32: Total number of employees (including employees with disabilities) in each of the following occupational bands, 31 March 2015

Table 33: Recruitment, 1 April 2014 to 31 March 2015

Occupational bands Male Female


Top management 0 0 0 0 0 0 0 0 0

Senior management 6 0 1 2 1 2 0 4 16

Professionally qualified and experienced specialists and mid-management

2 0 0 1 9 0 1 8 21

Skilled technical and academically qualified workers, junior management, supervisors, foremen and superintendents

1 0 0 0 9 1 1 0 12

Semi-skilled and discretionary-decision making

0 0 0 0 1 0 0 0 1

Unskilled and defined decision-making 0 0 0 0 0 0 0 0 0

Total 9 0 1 3 20 3 2 12 50



Top management (15–16)

0 0 0 0 0 0 0 0 0

Senior management (13–14)

0 0 0 0 0 0 0 0 0

Professionally qualified and experienced specialists and mid-management (9–12)

2 0 0 0 0 0 0 0 2

Skilled technical and academically qualified workers, junior management, supervisors, foremen and superintendents (6–8)

1 0 0 0 1 0 0 0 2

Semi-skilled and discretionary decision making (3–5)

0 0 0 0 0 0 0 0 0

Unskilled and defined decision making (1–2) 0 0 0 0 0 0 0 0 0

Total 3 0 0 0 1 0 0 0 4

Employees with disabilities 0 0 0 0 0 0 0 0 0

P a g e | 130

Table 34: Promotions, 1 April 2014 to 31 March 2015

Table 35: Terminations, 1 April 2014 to 31 March 2015

Minister and Deputy Minister not included in totals.




0 0 0 0 0 0 0 0 0


0 0 0 0 0 0 0 0 0


0 0 0 0 1 0 0 0 1


0 0 0 0 1 0 0 0 1

Semi-skilled and discretionary decision making (3–5) 0 0 0 0 0 0 0 0 0

Unskilled and defined decision-making (1–2) 0 0 0 0 0 0 0 0 0


Total 0 0 0 0 2 0 0 0 2




0 0 0 0 0 0 0 0 0


0 0 0 0 0 0 0 0 0


2 0 0 0 1 0 0 0 3


0 0 0 0 1 0 0 0 1

Semi-skilled and discretionary decision making (3–5) 0 0 0 0 0 0 0 0 0

Unskilled and defined decision-making (1–2) 0 0 0 0 0 0 0 0 0

Total 2 0 0 0 2 0 0 0 4

P a g e | 131

Table 36: Disciplinary action, 1 April 2014 to 31 March 2015

Table 37: Skills development, 1 April 2014 to 31 March 2015

Male Female


Disciplinary action 0 0 0 0 0 0 0 0 0

Occupational categories Male Female

Total African Coloured Indian White African Coloured Indian White

Legislators, senior officials and managers 4 0 1 1 0 1 0 1 8

Professionals 2 0 0 0 4 0 0 1 7

Technicians and associate professionals 0 0 0 0 4 0 0 2 6

Clerks 0 0 0 0 0 0 0 0 0

Service and sales workers 0 0 0 0 0 0 0 0 0

Skilled agriculture and fishery workers 0 0 0 0 0 0 0 0 0

Craft and related trades workers 0 0 0 0 0 0 0 0 0

Plant and machine operators and assemblers 0 0 0 0 0 0 0 0 0

Elementary occupations 0 0 0 0 0 0 0 0 0

Total 6 0 1 1 8 1 0 4 21


P a g e | 132

PERFORMANCE REWARDS

To encourage good performance, GTAC granted the following performance rewards during the year under review. The information is presented in terms of race, gender and disability (Table 38), salary bands (Table 39) and critical occupations (Table 40).

Table 38: Performance rewards by race, gender and disability, 1 April 2014 to 31 March 2015

Beneficiary profile Cost

Number of beneficiaries

Total number of employees in

group % of total

within group Cost (R 000) Average cost per

employee

African

Male 7 9 78 360 51

Female 18 20 78 480 27

Asian

Male 1 1 100 38 38

Female 2 2 100 70 35

Coloured

Male 0 0 0 0 0

Female 3 3 100 184 61

White

Male 3 3 100 173 58

Female 11 12 92 495 45

Total 45 50 85 1 800 40

P a g e | 133

Table 39: Performance rewards by salary band for personnel below senior management service level, 1 April 2014 to 31 March 2015

Table 40: Performance-related rewards (cash bonus) by salary band for senior management service

Salary band Beneficiary profile Cost

Number of

beneficiaries Number of employees

% of total within salary band

Total cost

(R 000)

Average cost per

employee (R 000)

Total cost as a % of total personnel

expenditure

Lower skilled (levels 1–2) 0 0 0 0 0 0

Skilled (levels 3–5) 1 1 100 13 13 0.01


10 10 100 199 19 0.03


16 23 69.5 627 33 0.09

Total 27 34 79.4 839 33 0.12

Salary band Beneficiary profile Total cost

(R 000)

Average cost per

employee

Total cost as a % of

total personnel

expenditure

Number of beneficiaries

Number of employees

% of total within band

Band A 12 13 92 611 47 0.09

Band B 5 5 100 350 66 0.05

Band C 0 0 0 0 0 0

Band D 0 0 0 0 0 0

Total 17 18 94.7 961 54 0.14

P a g e | 134

FOREIGN WORKERS

Table 41: Foreign workers by salary band, 1 April 2014 to 31 March 2015

Table 42: Foreign workers by major occupation, 1 April 2014 to 31 March 2015

LEAVE UTILISATION, 1 JANUARY 2014 TO 31 DECEMBER 2014

The Public Service Commission has identified the need for careful monitoring of sick leave in the public service. The following tables indicate the use of sick leave (Table 43) and disability leave (Table 44). In both cases, the estimated cost of the leave is also provided.

Salary band March 2014 March 2015 Change

Number % of total Number % of total Number % change


Skilled (levels 3–5) 0 0 0 0 0 0

Highly skilled production (levels 6–8) 0 0 0 0 0 0

Highly skilled supervision (levels 9–12) 0 0 3 100 3 100

Senior management (levels 13–16) 0 0 0 0 0 0

Total 0 0 3 100 3 100

Salary band March 2014 March 2015 Change

Number % of total Number % of total Number % change

Senior management 0 0 0 0 0 0

Professional qualified 0 0 0 0 0 0

Skilled technical 0 0 3 100 3 100

Semi-skilled 0 0 0 0 0 0

Unskilled 0 0 0 0 0 0

Total 0 0 3 100 3 100

P a g e | 135

Table 43: Sick leave, 1 January 2014 to 31 December 2014

Table 44: Disability leave (temporary and permanent), 1 January 2014 to 31 December 2014

Table 45 summarises the annual leave used during 2014/15. The wage agreement concluded with trade unions in the Public Service Coordinating Bargaining Council in 2000 requires management of annual leave to prevent high levels of accrued leave being paid at the time of termination of service.

Salary band Total days

% days with medical

certification

Number of employees using sick

leave

% of total employees using sick

leave

Average days per employee

Estimated cost

(R 000)


Skilled (levels 3–5) 4 100 1 2.6 4 5

Highly skilled production (levels 6–8) 74 81 9 23.1 8 76


111 86 13 33.3 9 181

Senior management (levels 13–16) 97 71 16 41.0 6 312

Total 286 80 39 100 7 330

Salary band

Total days taken

% days with medical

certification

Number of employees

using disability

leave

% of total employees

using disability

leave

Average days per employee

Estimated cost

(R 000)


Skilled (levels 3–5) 0 0 0 0 0 0


0 0 0 0 0 0


0 0 0 0 0 0

Senior management (levels 13–16) 0 0 0 0 0 0

Total 0 0 0 0 0 0

P a g e | 136

Table 45: Annual leave, 1 January 2014 to 31 December 2014

Table 46: Capped leave, 1 January 2014 to 31 December 2014

The following table summarises payments made to employees as a result of leave not taken.

Table 47: Leave payouts for the period 1 April 2014 to 31 March 2015

Salary bands Total days taken Average per employee

Lower skilled (levels 1–2) 0 0

Skilled (levels 3–5) 26 26

Highly skilled production (levels 6–8) 194 18

Highly skilled supervision (levels 9–12) 394 23

Senior management (levels 13–16) 442 23

Total 1 056 22

Salary bands Total days of capped leave

taken

Average number of days taken per

employee

Average capped leave per

employee as at 31 December 2014

Lower skilled (levels 1–2) 0 0 0

Skilled (levels 3–5) 0 0 0

Highly skilled production (levels 6–8) 0 0 0

Highly skilled supervision(levels 9–12) 0 0 0

Senior management (levels 13–16) 0 0 0

Total 0 0 0

Reason Total amount

(R 000) (a)

Number of employees

(b)

Average payment per employee

(R 000)

Leave payout for 2014/15 due to non-utilisation of leave for the previous cycle 0 0 0

Capped leave payouts on termination of service for 2014/15 0 0 0

Current leave payout on termination of service for 2014/15 56 4 14

Total 56 4 14

P a g e | 137

HIV/AIDS AND HEALTH PROMOTION PROGRAMMES

Table 48: Steps taken to reduce the risk of occupational exposure

The information in the following table is based on GTAC’s shared service agreement with the National Treasury.

Table 49: Details of health promotion and HIV/AIDS programmes

Units/categories of employees identified to be at high risk of contracting HIV and related diseases (if any)

Key steps taken to reduce the risk

N/A N/A

Question Yes No Details, if yes

1. Has the department designated a member of the SMS to implement the provisions contained in Part VI E of Chapter 1 of the Public Service Regulations (2001)? If so, provide her/his name and position.

X

2. Does the department have a dedicated unit or has it designated specific staff members to promote the health and well-being of your employees? If so, indicate the number of employees who are involved in this task and the annual budget that is available for this purpose.

X

The Employee Wellness Unit is a subdirectorate of the Organisational Development directorate within the Human Resources Management Chief Directorate. The Employee Wellness Unit is run by a wellness specialist (Assistant Director) and one intern, recruited through the National Treasury Graduate Development Programme on a fixed-term contract for a period of two years. The unit has a budget of R3.5 million to use over a period of three years.

3. Has the department introduced an employee assistance or health promotion programme for employees? If so, indicate the key elements/services of this programme.

X

The National Treasury provides employee assistance programmes under its programme brand of Siyaphila. Siyaphila is a confidential, free, 24-hour, 365-day personal support line for National Treasury employees and their immediate family members. These services include counselling services, wellness management, HIV/AIDS management, primary healthcare services and productivity management.

P a g e | 138

4. Has the department established (a) committee(s) as contemplated in Part VI E.5 (e) of Chapter 1 of the Public Service Regulations? If so, please provide the names of the members of the committee and the stakeholder(s) that they represent.

X

The committee consists of employees across the department in various divisions. These include: Sheridan Pillay Johnny October Margaret Serumula Innocentia Machaba Jolanda Watton Octavia Maphila Nomlotha Mazibuko Betty Malope Judith Rudolph Ezre Stokes Tebogo Lekote This committee has not been active in 2014/15 and is to be revived in 2015/16. It has, however, been involved in events planning, identifying health inhibitors and providing solutions to enhance the quality of service rendered to the department. A review of the terms of reference and contracting of committee members will occur in 2015/16.

5. Has the department reviewed its employment policies and practices to ensure that these do not unfairly discriminate against employees on the basis of their HIV status? If so, list the employment policies/practices reviewed. X

The HIV/AIDS and TB management policy has been reviewed and tabled at the Governance Review and Departmental Bargaining Chambers for consultation and endorsement. A task team for Employee Wellness Programme policies and frameworks has been established and is represented by stakeholders including organised labour, employee relations, occupational health and safety, the chief risk officer, divisional support of Corporate Services and Human Resources Management.

6. Has the department introduced measures to protect HIV-positive employees or those perceived to be HIV-positive from discrimination? If so, list the key elements of these measures.

X

Confidentiality clauses are in place and still enforced. New infections are managed by the primary healthcare personnel.

7. Does the department encourage its employees to undergo voluntary counselling and testing? If so, list the results achieved.

X

In 2014/15, 194 employees voluntarily tested for HIV/AIDS. The department has a clinic on-site providing primary healthcare services. The clinic is occupied by a nurse twice a week for four hours each day, and a doctor one day a week for an hour. The services are free and provide employees with an opportunity to do voluntary testing. The Siyaphila programme hosts six departmental events per year, where employees also have the opportunity to do voluntary testing. Nurses are present at each of the events to render this service.

P a g e | 139

LABOUR RELATIONS

GTAC did not enter into collective agreements with trade unions during 2014/15.

Table 50: Collective agreements, 1 April 2014 to 31 March 2015

Table 51: Misconduct and disciplinary hearings finalised, 1 April 2014 to 31 March 2015

Table 52: Types of misconduct addressed at disciplinary hearings

8. Has the department developed measures/indicators to monitor and evaluate the effect of its health promotion programme? If so, list these measures/indicators.

X

Rate of absenteeism. Number of health-related complaints. Voluntary HIV/AIDS reports (that do not

compromise confidentiality). Employee Wellness Programme satisfaction

surveys. Wellness cards to continuously monitor and

improve on health risk assessments. Quarterly and annual usage statistics of

services.

Subject matter Date

N/A N/A

Outcomes of disciplinary hearings Number % of total

Correctional counselling 0 0

Verbal warning 0 0

Written warning 0 0

Final written warning 0 0

Suspended without pay 0 0

Fine 0 0

Demotion 0 0

Dismissal 0 0

Not guilty 0 0

Case withdrawn 0 0

Total 0 0

Type of misconduct Number % of total

Disruptive behaviour, gross negligence, insubordination, dishonesty

0 0

Total 0 0

P a g e | 140

Table 53: Grievances lodged, 1 April 2014 to 31 March 2015

Table 54: Disputes lodged with councils, 1 April 2014 to 31 March 2015

Table 55: Strike actions, 1 April 2014 to 31 March 2015

Table 56: Precautionary suspensions, 1 April 2014 to 31 March 2015

Number % of total

Number of grievances resolved 0 0

Number of grievances not resolved 0 0

Total number of grievances lodged 0 0

Number % of total

Number of disputes upheld 0 0

Number of disputes dismissed 0 0

Total number of disputes lodged 0 0

Total number of person working days lost 0

Total cost (R 000) of working days lost 0

Amount (R 000) recovered as a result of no work no pay 0

Number of people suspended 0

Number of people whose suspension exceeded 30 days 0

Average number of days suspended 0

Cost of suspensions 0

P a g e | 141

SKILLS DEVELOPMENT

This section summarises GTAC’s skills development work.

Table 57: Training needs identified, 1 April 2014 to 31 March 2015

Minister and Deputy Minister not included in total.

Occupational categories Gender

Number of employees

as at 1 April 2014

Training needs identified at start of reporting period

Learnerships Skills

programmes and other

short courses

Other forms of training

Total

Legislators, senior officials and managers

Female 6 0 2 0 2

Male 9 0 5 1 6

Professionals Female 18 0 5 0 5

Male 5 0 2 0 2

Technicians and associated professionals

Female 12 0 5 1 6

Male 0 0 0 0 0

Clerks Female 0 0 0 0 0

Male 0 0 0 0 0

Service and sales workers

Female 0 0 0 0 0

Male 0 0 0 0 0

Skilled agriculture and fishery workers

Female 0 0 0 0 0

Male 0 0 0 0 0

Craft and related trades workers

Female 0 0 0 0 0

Male 0 0 0 0 0

Plant and machine operators and assemblers

Female 0 0 0 0 0

Male 0 0 0 0 0

Elementary occupations

Female 0 0 0 0 0

Male 0 0 0 0 0

Subtotal Female 36 0 12 1 13

Male 14 0 7 1 8

Total 50 0 19 2 21

P a g e | 142

Table 58: Training provided, 1 April 2014 to 31 March 2015

Minister and Deputy Minister not included in total.

INJURIES ON DUTY

Table 59: Injuries on duty, 1 April 2014 to 31 March 2015

Occupational categories Gender

Number of employees

as at 1 April 2014

Training provided within the reporting period

Learnerships

Skills programmes

and other short

courses

Other forms of training

Total

Legislators, senior officials and managers

Female 6 0 2 0 2

Male 9 0 5 1 6

Professionals Female 18 0 5 0 5

Male 5 0 2 0 2

Technicians and associated professionals

Female 12 0 5 1 6

Male 0 0 0 0 0

Clerks Female 0 0 0 0 0

Male 0 0 0 0 0

Service and sales workers

Female 0 0 0 0 0

Male 0 0 0 0 0

Skilled agriculture and fishery workers

Female 0 0 0 0 0

Male 0 0 0 0 0

Craft and related trades workers

Female 0 0 0 0 0

Male 0 0 0 0 0

Plant and machine operators and assemblers

Female 0 0 0 0 0

Male 0 0 0 0 0

Elementary occupations

Female 0 0 0 0 0

Male 0 0 0 0 0

Subtotal Female 36 0 12 1 13

Male 14 0 7 1 8

Total 50 0 19 2 21

Nature of injury on duty Number % of total

Required basic medical attention only 0 0

Temporary total disablement 0 0

Permanent disablement 0 0

Fatal 0 0

Total 0 0

P a g e | 143


PART E: GOVERNANCE

P a g e | 144

GOVERNANCE GTAC is a government component established in terms of Legal Notice 261, issued in terms of the Public Service Act and gazetted on 30 March 2012.

The Minister of Finance assigned several functions and organisational units from the National Treasury to GTAC in April 2014. Personnel were initially seconded from the National Treasury to GTAC.

For purposes of planning and reporting in terms of the Public Finance Management Act and in compliance with the Treasury Regulations, for the period under review GTAC was a component of Programme 8 of the National Treasury vote – Technical Support and Development Finance – and is accordingly included in the 2014/15 strategic and annual performance plans and the annual report of the National Treasury.

RISK MANAGEMENT Through a shared service agreement with the Corporate Services Division of the National Treasury, GTAC has used the National Treasury Enterprise Risk Management services during 2014/15.

INTERNAL AUDIT REPORT During 2014/15, GTAC continued to use the National Treasury’s internal audit function through a shared services agreement.

P a g e | 145


ANNEXURES

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piled

will

be av

ailab

le in

1st Q

uarte

r of

2015

/16.

Annu

al ou

tput a

nd va

rianc

e: Pr

ogra

mme 8

offic

e co

ordin

ation

func

tion c

ontin

ues t

o be p

erfor

med b

y GTA

C.

The P

rogr

amme

Offic

e was

stre

ngthe

ned t

hrou

gh qu

arter

ly ma

nage

ment

comm

ittees

held

to co

ordin

ate bu

dget

and

dono

r fun

ding.

This

was b

y com

plying

with

the g

over

nanc

e an

d rep

ortin

g req

uirem

ents

throu

gh q

uarte

rly na

rrativ

e re

ports

that

indica

te fin

ancia

l and

gove

rnan

ce co

mplia

nce.

A pu

blish

able

2014

/15 an

nual

repo

rt wi

ll be a

vaila

ble by

the

end s

econ

d qua

rter o

f the 2

015/1

6 fina

ncial

year

.

Achie

ved:

Prog

ramm

e 8

Mana

geme

nt Co

mmitte

e es

tablis

hed

Prog

ramm

e 8 an

d GT

AC Q

1 rep

ort

comp

iled

Prog

ramm

e 8 an

d GT

AC Q

2 rep

ort

comp

iled

Prog

ramm

e 8 an

d GT

AC Q

3 rep

ort a

nd

strate

gic pl

an fo

r 20

15 M

TEF

comp

iled

2 G

TAC

estab

lishe

d

Fu

rther

deve

lop

GTAC

’s ca

pacit

y and

ad

visor

y ser

vice

prod

ucts

Targ

et:

Estab

lish i

nitial

or

ganis

ation

al de

sign

Comp

lete f

inanc

ial

mana

geme

nt an

d HR

tran

sition

Qu

arter

ly re

portin

g on

GTA

C Qu

arter

ly re

portin

g on

GTA

C

Prog

ramm

e 8 an

d GT

AC Q

uarte

rly

Repo

rts to

Mini

ster o

f Fin

ance

Annu

al ou

tput a

nd va

rianc

e: Co

mplet

ion of

GTA

C fin

ancia

l ma

nage

ment

and H

R tra

nsitio

n defe

rred t

o 201

5/16.

Seco

nd ph

ase o

f org

aniza

tiona

l HR

trans

fer im

pleme

nted w

ef 1 A

pril 2

015.

Appr

oval

rece

ived t

o tra

nsfer

emplo

yees

after

the s

econ

dmen

t per

iod to

GTA

C.

Finan

cial re

portin

g for

GTA

C pr

ovide

d on a

quar

terly

basis

as

part

of the

narra

tive r

epor

ts. F

inanc

ial S

tatem

ents

will b

e pr

ovide

d und

er th

e Ann

ual R

epor

t for G

TAC

and

Prog

ramm

e 8.

The d

eferra

l of H

R an

d fina

ncial

arra

ngem

ents

will b

e

Achie

ved:

Inter

im G

TAC

Mana

geme

nt Co

mmitte

e es

tablis

hed

Finan

cial

mana

geme

nt an

d HR

proc

esse

s un

der w

ay

Supp

ort fo

r Pha

kisa

labs p

rovid

ed (s

ee

quar

terly

repo

rt)

Quar

terly

repo

rting

Pa

ge

| 1

47

Perfo

rman

ce in

dica

tor

Qu

arte

rly ta

rget

s and

out

puts

achi

eved

Re

fere

nce/s

ourc

e Ex

plan

atio

n no

te

and

varia

nce

An

nual

targ

et

Q1

Q2

Q3

Q4

addr

esse

d for

finali

zatio

n dur

ing th

e 201

5/16 f

inanc

ial ye

ar,

to be

comp

leted

by 31

Mar

ch.

3 Pr

oject

appr

aisals

and e

cono

mic a

sses

smen

t of p

olicy

and p

rogr

amme

s

Per

form

3–5 p

rojec

t ap

prais

als

Stre

ngthe

n majo

r ca

pital

proje

ct ap

prais

al ca

pacit

y D

evelo

p fra

mewo

rk for

priva

te fin

ance

in

supp

ort o

f inf

rastr

uctur

e inv

estm

ent

Targ

et:

3–5 c

apita

l pro

ject a

ppra

isals;

repo

rt on

infra

struc

ture f

inanc

e tas

k tea

m

NCP

Unit:

Prog

ramm

e 8 an

d GT

AC Q

uarte

rly

Repo

rt, G

TAC

repo

rts 13

proje

ct as

sess

ment

repo

rts

Rese

arch

on tr

ansp

ort a

ppra

isal m

ethod

ologie

s

Repo

rt on

deve

lopme

nt of

inves

tmen

t fram

ewor

k

Perfo

rmed

four

proje

ct ap

prais

als

Stre

ngthe

ned m

ajor c

apita

l pro

ject a

ppra

isal c

apac

ity.

Deve

loped

a fra

mewo

rk for

priva

te fin

ance

in su

ppor

t of

infra

struc

ture i

nves

tmen

t

Comp

leted

nine

perfo

rman

ce an

d exp

endit

ure r

eview

s

Devia

tion

More

proje

ct as

sess

ments

done

, but

a num

ber o

f thes

e we

re sm

aller

and r

elated

to E

skom

and e

nerg

y sec

tor,

which

is at

ypica

l.

Metho

dolog

y ado

pted t

akes

4-6

mon

ths to

comp

lete o

ne

revie

w, 8-

10 re

views

are d

one s

imult

aneo

usly.

Achie

ved:

Prog

ramm

e 8 re

port

5 rep

orts

on ca

pital

proje

cts

Prog

ramm

e 8

quar

terly

repo

rt 2 r

epor

ts on

capit

al pr

ojects

Re

port

on

deve

lopme

nt of

inves

tmen

t fra

mewo

rk

Prog

ramm

e 8

quar

terly

repo

rt 2 r

epor

ts on

capit

al pr

ojects

4 rep

orts

on ca

pital

proje

cts

Unde

rtake

5–10

ex

pend

iture

and

perfo

rman

ce re

views

Ta

rget:

Ini

tiate

5–10

EPR

s Su

ppor

t per

sonn

el re

view

proc

ess

3-5 r

eview

repo

rts

3–

5 rev

iew re

ports

3–5 r

eview

repo

rts

GT

AC E

PR re

ports

an

d rec

ords

Ac

hieve

d: 2 r

eview

s com

pleted

3 r

eview

s co

mplet

ed

3 rev

iews

comp

leted

Ini

tiated

10 re

views

, co

mplet

ed

Subp

rogr

amm

e: G

over

nmen

t Tec

hnica

l Adv

isory

Cen

tre

4 Nu

mber

of te

chnic

al as

sistan

ce pr

ojects

supp

orted

10

0

Targ

et:

50

65

85

100

GTAC

Bus

iness

Ma

nage

ment

Infor

matio

n Sys

tem

93 p

rojec

ts su

ppor

ted.

This

numb

er i

s de

termi

ned

by

dema

nd, a

nd al

so ap

prov

al wa

s give

n for

a lar

ger n

umbe

r of

proje

cts th

an c

ould

be a

chiev

ed.

Thou

gh th

e nu

mber

of

proje

cts s

uppo

rted

is low

er th

an a

nticip

ated

this

has

much

to

do w

ith th

e sc

alabil

ity o

f pro

jects.

This

impa

cts o

n the

nu

mber

of pr

ojects

supp

orted

.

Achie

ved:

80 su

ppor

ted

77 su

ppor

ted

84 su

ppor

ted

93 pr

ojects

su

ppor

ted

Pa

ge

| 1

48

Perfo

rman

ce in

dica

tor

Qu

arte

rly ta

rget

s and

out

puts

achi

eved

Re

fere

nce/s

ourc

e Ex

plan

atio

n no

te

and

varia

nce

An

nual

targ

et

Q1

Q2

Q3

Q4

5 Pe

rcenta

ge of

clien

ts wh

o hav

e obs

erve

d cap

acity

impr

ovem

ent

85

%

Targ

et:

85%

85

%

85%

85

%

Clien

t sati

sfacti

on

surve

y; fee

dbac

k and

ev

aluati

ons

The a

nnua

l av

erag

e for

this

ind

icator

was

90.6

25%

for

inter

nal a

s we

ll as

exte

rnal

clien

ts. In

Q4

96%

of e

xtern

al cli

ents

and

87.2

% o

f inte

rnal

clien

ts, a

n av

erag

e of

92%

, ob

serve

d cap

acity

impr

ovem

ent. T

his da

ta wa

s der

ived f

rom

clien

t sa

tisfac

tion

surve

ys,

feedb

ack

and

evalu

ation

s co

mplet

ed.

Achie

ved:

88.5%

93

%

89%

96

% ex

terna

l and

87

.2% in

terna

l =

92%

6 Nu

mber

of kn

owled

ge pr

oduc

ts re

lated

to ca

pacit

y buil

ding (

learn

ing ne

twor

ks, c

ommu

nities

of pr

actic

e, ca

se st

udies

, lear

ning

sess

ions a

nd kn

owled

ge ex

chan

ge)

10

Targ

et:

2 2

3 3

GTAC

reco

rds,

prog

ress

repo

rts

Seve

n ses

sions

and t

wo pr

oduc

ts we

re co

nduc

ted/pr

oduc

ed

in Q4

. For

201

4/15

a tot

al of

31 pr

oduc

ts an

d se

ssion

s wer

e co

nduc

ted an

d dev

elope

d.

Devia

tion

The

know

ledge

pro

ducts

and

ses

sions

are

nee

ds a

nd

oppo

rtunit

y driv

en w

hich

resu

lted i

n mo

re s

essio

ns t

han

plann

ed.

Achie

ved:

13

5 4

7 ses

sions

and 2

pr

oduc

ts

7

PPP

and c

apita

l pro

jects

supp

orted

PRAS

A ro

lling s

tock

Re

newa

ble en

ergy

IPP

prog

ramm

e

Hosp

ital re

vitali

satio

n

Othe

r pro

jects

Ongo

ing m

onito

ring

and s

uppo

rt for

im

pleme

ntatio

n of

PRAS

A ro

lling s

tock

prog

ramm

e

Targ

et:

Perfo

rman

ce of

the R

olling

Stoc

k pro

gram

me ag

ainst

targe

ts.

Quar

terly

repo

rts of

the

PRA

SA ro

lling

stock

prog

ramm

e

Quar

terly

repo

rts in

dicati

ng th

at PR

ASA

rollin

g stoc

k pr

ogra

mme i

s on t

rack

to m

eet q

uarte

rly ta

rgets

. No

varia

nce.

Ac

hieve

d: Qu

arter

ly re

ports

: PR

ASA

rollin

g stoc

k pro

gram

me is

on tr

ack t

o mee

t qua

rterly

targ

ets

REIP

PPP

3rd r

ound

an

d pre

para

tion f

or

furthe

r sup

port

to Do

E lar

ge po

wer p

rodu

cer

proje

cts

Targ

et:

Prog

ress

linke

d to

proje

ct life

-cycle

.

Prog

ress

linke

d to

proje

ct life

-cycle

.

Prog

ress

linke

d to

proje

ct life

-cycle

.

Prog

ress

linke

d to

proje

ct life

-cycle

Qu

arter

ly re

ports

of

the R

EIPP

PP O

ffice

Quar

terly

repo

rts on

prog

ress

linke

d to p

rojec

t life-

cycle

.

Achie

ved:

Ongo

ing su

ppor

t to

DoE

Prep

arati

on of

RE

IPPP

P 3r

d ro

und o

n tra

ck

REIP

PPP

3rd r

ound

ten

der c

omple

ted

Quar

terly

repo

rts on

pr

ogre

ss lin

ked t

o pr

oject

life-cy

cle

Phas

ed

imple

menta

tion o

f ho

spita

l rene

wal a

nd

PPP

supp

ort

Targ

et:

Prog

ress

base

d on

proje

ct life

cycle

Pr

ogre

ss ba

sed o

n pr

oject

life cy

cle

Prog

ress

base

d on

proje

ct life

cycle

Pr

ogre

ss ba

sed o

n pr

oject

life cy

cle

GTAC

Qua

rterly

re

ports

, PPP

Unit

re

cord

s

Feas

ibility

stud

ies co

mplet

ed as

part

of the

first

phas

e, wa

iting t

o pro

ceed

to im

pleme

ntatio

n.

This

proje

ct is

off th

e list

pend

ing th

e fina

l dec

ision

by D

oH.

Achie

ved:

Feas

ibility

stud

ies

comp

leted

Fir

st ph

ase c

omple

ted, w

aiting

to pr

ocee

d to i

mplem

entat

ion

Pa

ge

| 1

49

Perfo

rman

ce in

dica

tor

Qu

arte

rly ta

rget

s and

out

puts

achi

eved

Re

fere

nce/s

ourc

e Ex

plan

atio

n no

te

and

varia

nce

An

nual

targ

et

Q1

Q2

Q3

Q4

prog

ramm

e

Othe

r tra

nsac

tion

advis

ory p

rojec

ts:

appr

oxim

ately

10 pe

r ye

ar

Targ

et:

Quar

terly

repo

rt on

new

proje

cts re

gister

ed an

d pro

gres

s on o

ngoin

g pro

jects

GTAC

Qua

rterly

re

ports

, PPP

Unit

re

cord

s

Othe

r tra

nsac

tion a

dviso

ry pr

ojects

supp

orted

; qua

rterly

re

port

on ne

w pr

ojects

regis

tered

; pro

gres

s on o

ngoin

g pr

ojects

.

Achie

ved:

6 new

proje

cts

regis

tered

Ne

w pr

ojects

regis

tered

and r

egist

ratio

n let

ters i

ssue

d

Quar

terly

repo

rt on

ne

w pr

ojects

re

gister

ed an

d pr

ogre

ss on

ongo

ing

proje

cts

Subp

rogr

amm

e: L

ocal

Gove

rnm

ent F

inan

cial M

anag

emen

t Sup

port

8 Nu

mber

of fin

ancia

l man

agem

ent in

terns

appo

inted

to m

unici

paliti

es

1 3

90

Targ

et:

400

400

190

400

CD: M

FMA

Imple

menta

tion

Munic

ipaliti

es’

month

ly re

ports

1286

Inter

ns ap

point

ed

Varia

nce d

ue to

abso

rptio

n of in

terns

into

perm

anen

t po

sition

s at m

unici

paliti

es an

d inte

rns l

eavin

g for

othe

r op

portu

nities

. Ac

hieve

d: 1 3

09

1 278

1 2

84

1 286

9 Nu

mber

of m

unici

paliti

es as

sisted

thro

ugh M

FIP

Ini

tiatio

n of M

FIP

II and

es

tablis

hmen

t of P

MU

office

Targ

et:

Phas

e 1 of

the M

FIP

ende

d 31 M

arch

2014

. Wind

-dow

n of p

hase

1 an

d plan

ning f

or

MFIP

II. In

itial ro

und o

f plac

emen

ts in

munic

ipaliti

es in

Q3 a

nd Q

4

CD: C

apac

ity

Build

ing, O

AG.

MFIP

PMU

reco

rds

and m

unici

pal a

dviso

r re

ports

The F

MCMM

asse

ssme

nt wa

s und

ertak

en in

73%

of 27

8 mu

nicipa

lities

.

Seco

nd ro

und o

f mun

icipa

lities

iden

tified

for s

uppo

rt. 33

po

tentia

l ser

vice p

rovid

ers i

nvite

d to s

ubmi

t pro

posa

ls.

Inter

views

cond

ucted

23 –

27 F

ebru

ary 2

015 a

nd fu

rther

se

ven a

dviso

rs ap

point

ed co

mmen

cing M

arch

2015

. In to

tal

16 m

unici

pal a

dviso

rs ap

point

ed an

d two

Stan

dard

Cha

rt of

Acco

unts

(SCO

A) a

dviso

rs ap

point

ed.

Phas

e 1 of

the M

FIP

ende

d 31 M

arch

2014

. Wind

-dow

n of

phas

e 1 an

d plan

ning f

or M

FIP

II. Ini

tial ro

und o

f pla

ceme

nts in

mun

icipa

lities

in Q

3 and

Q4.

Achie

ved:

No m

unici

paliti

es

supp

orted

with

TA

assis

tance

in th

is qu

arter

TA

s app

ointed

to

IGR

to su

ppor

t mu

nicipa

l fina

nce

refor

m

MFIP

II de

signe

d an

d stee

ring

comm

ittee

estab

lishe

d Te

nder

issu

ed fo

r pr

ospe

ctive

servi

ce

prov

iders

MFIP

II ini

tial

datab

ase o

f ser

vice

prov

iders

appo

inted

on

11 N

ovem

ber

2014

11

mun

icipa

lities

ide

ntifie

d for

first

roun

d of s

uppo

rt 9 a

dviso

rs ap

point

ed fo

r co

mmen

ceme

nt of

dutie

s on 5

Janu

ary

2015

Seco

nd ro

und o

f mu

nicipa

lities

ide

ntifie

d for

supp

ort

33 po

tentia

l ser

vice

prov

iders

invite

d to

subm

it pro

posa

ls Int

ervie

ws

cond

ucted

23–2

7 Fe

brua

ry 20

15 an

d fur

ther 7

advis

ors

appo

inted

co

mmen

cing M

arch

20

15

In tot

al 16

Mun

icipa

l Ad

visor

s app

ointed

an

d 2 S

tanda

rd

Char

t of A

ccou

nts

Pa

ge

| 1

50

Perfo

rman

ce in

dica

tor

Qu

arte

rly ta

rget

s and

out

puts

achi

eved

Re

fere

nce/s

ourc

e Ex

plan

atio

n no

te

and

varia

nce

An

nual

targ

et

Q1

Q2

Q3

Q4

(SCO

A) A

dviso

rs ap

point

ed

10

Audit

actio

n plan

s dev

elope

d and

imple

mente

d

Al

l mun

icipa

lities

Targ

et:

60

120

180

278

CD: M

FMA

Imple

menta

tion

Month

ly re

ports

of

munic

ipaliti

es

Ther

e wer

e 203

mun

icipa

l aud

it acti

on pl

ans d

evelo

ped t

o ad

dres

s 201

3/14 a

udit f

inding

s as a

t 28 F

ebru

ary 2

015.

The

rema

ining

actio

n plan

s are

in th

e pro

cess

of be

ing

deve

loped

. De

viatio

n Th

e rem

aining

75 m

unici

pal a

udit a

ction

plan

s are

in th

e pr

oces

s of b

eing d

evelo

ped w

hich i

s dep

ende

nt on

issu

ance

of

audit

opini

on by

the A

udito

r-Gen

eral.

Achie

ved:

243

274

275

Ther

e wer

e 203

mu

nicipa

l aud

it ac

tion p

lans

deve

loped

to

addr

ess 2

013/1

4 au

dit fin

dings

as at

28

Feb

ruar

y 201

5 Th

e rem

aining

ac

tion p

lans a

re in

the

proc

ess o

f bein

g de

velop

ed

11

Mu

nicipa

l com

plian

ce w

ith B

udge

t and

Tre

asur

y Offic

e, su

pply

chain

man

agem

ent, i

ntern

al au

dit an

d aud

it com

mitte

e req

uirem

ents

Im

pleme

nt mu

nicipa

l fin

ancia

l man

agem

ent

capa

bility

asse

ssme

nt

Targ

et:

Phas

e 1 ro

llout

Phas

e 2 ro

llout

Asse

ssme

nts in

50

% of

mu

nicipa

lities

Asse

ssme

nts in

10

0% of

mu

nicipa

lities

CD: M

FMA

Imple

menta

tion U

nit

FMG

month

ly re

ports

fro

m mu

nicipa

lities

The

FMCM

M for

mun

icipa

lities

was

und

ertak

en in

73

per

cent

of mu

nicipa

lities

at

the e

nd o

f Ma

rch 2

015,

other

as

sess

ments

conti

nuing

in A

pril 2

015.

Delay

exp

erien

ced

in the

com

pletio

n of

asse

ssme

nt an

d ro

llout

by

munic

ipaliti

es

due

to oth

er

comm

itmen

ts ex

pres

sed

by m

unici

pal o

fficial

s. Ou

tstan

ding

asse

ssme

nts

will b

e foll

owed

up du

ring A

pril a

nd M

ay 20

15.

Due

to cir

cums

tance

s ou

tside

of t

he s

et tar

get a

var

iance

oc

curre

d and

shou

ld be

noted

.

Achie

ved:

FMCM

M too

l de

velop

ed an

d re

ady f

or co

untry

wi

de ro

ll out

Await

ing in

terna

l ap

prov

al pr

oces

s to

proc

eed w

ith

exter

nal te

nder

s

Deve

lopme

nt of

asse

ssme

nt too

l co

mplet

ed

Deve

lopme

nt of

FMCM

M as

sess

ment

tool

comp

leted

. Ten

der

evalu

ation

proc

ess

also c

omple

ted in

De

cemb

er 20

14.

Rollo

ut of

asse

ssme

nts at

mu

nicipa

lities

pla

nned

from

Ja

nuar

y to M

arch

20

15

The F

MCMM

for

munic

ipaliti

es w

as

unde

rtake

n in 7

3%

of mu

nicipa

lities

at

the en

d of M

arch

20

15, o

ther

asse

ssme

nts

conti

nuing

in A

pril

2015

Pa

ge

| 1

51

Perfo

rman

ce in

dica

tor

Qu

arte

rly ta

rget

s and

out

puts

achi

eved

Re

fere

nce/s

ourc

e Ex

plan

atio

n no

te

and

varia

nce

An

nual

targ

et

Q1

Q2

Q3

Q4

Subp

rogr

amm

e: U

rban

Dev

elopm

ent S

uppo

rt

12

Long

-term

urba

n reg

ener

ation

prog

ramm

es re

gister

ed (c

umula

tive)

13

Ta

rget:

CD: N

DP U

nit

Munic

ipal p

lans

subm

itted t

o NT

The P

rogr

amme

regis

tered

13 lo

ng-te

rm ur

ban r

egen

erati

on

prog

ramm

es du

ring 2

014/1

5.

Achie

ved:

2 3

8 13

13

Total

numb

er of

catal

ytic N

eighb

ourh

ood D

evelo

pmen

t Pro

gram

me pr

ojects

appr

oved

(cum

ulativ

e)

32

0

Targ

et:

300

310

315

320

CD: N

DP U

nit

Munic

ipal p

lans

subm

itted t

o NT

Cumu

lative

numb

er of

catal

ytic p

rojec

ts ap

prov

ed is

317.

Due t

o exte

nded

timefr

ames

to fin

alise

prec

inct p

lans (

urba

n hu

bs) t

o a su

fficien

t leve

l of d

etail t

o ide

ntify

catal

ytic

proje

cts, th

ere h

as be

en a

delay

in id

entify

ing th

e tar

geted

nu

mber

. De

viatio

n 3 c

atalyt

ic pr

ojects

unde

r way

. Due

to th

e rev

ised N

DPG

appr

oach

– i.e

. the U

rban

Netw

ork S

trateg

y, the

NDP

is

worki

ng w

ith a

redu

ced 1

8 mun

icipa

lities

. The

se

munic

ipaliti

es ar

e not

just d

oing p

rojec

ts, bu

t plan

ning a

t a

city-w

ide an

d pre

cinct

level.

Due

to lo

nger

timefr

ames

to

finali

se pr

ecinc

t plan

s (ur

ban h

ubs)

to a s

uffici

ent le

vel o

f de

tail w

here

by ca

talyti

c pro

jects

are i

denti

fied,

there

has

been

a de

lay in

iden

tifying

the t

arge

ted n

umbe

r of p

rojec

ts.

Achie

ved:

293

307

311

317

14

Numb

er of

Neig

hbou

rhoo

d Dev

elopm

ent P

artne

rship

Gran

t pro

jects

unde

r con

struc

tion

40

Targ

et:

10

20

30

40

CD: N

DP U

nit

Munic

ipal re

ports

su

bmitte

d to N

T

42 D

evelo

pmen

t Par

tnersh

ip Gr

ant p

rojec

ts un

der

cons

tructi

on ac

hieve

d. De

viatio

n 2 N

DPG

proje

cts un

der c

onstr

uctio

n. Du

e to t

he na

ture a

nd

scale

of pr

ojects

in th

e 18 u

rban

mun

icipa

lities

, ther

e are

mu

ltiple

multi-

year

capit

al pr

ojects

. In ad

dition

new

catal

ytic

proje

cts in

prec

incts

have

been

appr

oved

to pr

ocee

d to

cons

tructi

on. H

ence

, ther

e are

both

new

proje

cts an

d pr

ojects

on th

e gro

und.

In the

curre

nt fin

ancia

l yea

r, the

re

are a

n add

itiona

l two p

rojec

ts.

Achie

ved:

83

11

21

21

Pa

ge

| 1

52

Perfo

rman

ce in

dica

tor

Qu

arte

rly ta

rget

s and

out

puts

achi

eved

Re

fere

nce/s

ourc

e Ex

plan

atio

n no

te

and

varia

nce

An

nual

targ

et

Q1

Q2

Q3

Q4

15

Estim

ated N

eighb

ourh

ood D

evelo

pmen

t Pro

gram

me th

ird-p

arty

inves

tmen

t leve

rage

d (cu

mulat

ive)

R2

500 m

illion

Targ

et:

R2 50

0 milli

on

CD: N

DP U

nit

Munic

ipal re

ports

su

bmitte

d to N

T

R2 49

4 milli

on th

ird-p

arty

inves

tmen

t leve

rage

d. R

6 milli

on. L

ever

age i

s esti

mated

. It is

only

track

ed an

d re

porte

d by m

unici

paliti

es th

roug

h the

Unit

’s Ma

nage

ment

Infor

matio

n Sys

tem. T

his is

a be

st eff

ort e

stima

te.

Achie

ved:

No ch

ange

in

lever

age

R2 12

8 milli

on

R2 20

3 milli

on

R2 49

4 milli

on

16

Numb

er of

spati

al tra

nsfor

matio

n zon

es id

entifi

ed in

partic

ipatin

g mun

icipa

lities

(per

year

)

12

Targ

et:

2 5

- 5

CD: P

LGI

Munic

ipal B

uilt

Envir

onme

nt Pl

ans

Metro

polita

n mun

icipa

lities

have

subm

itted t

heir c

ounc

il ap

prov

ed bu

ilt en

viron

ment

perfo

rman

ce pl

ans f

or th

e 20

14/15

year

. Acro

ss th

e 8 B

uilt E

nviro

nmen

t Per

forma

nce

Plan

s, 14

integ

ratio

n zon

es w

ere

identi

fied a

s prio

ritise

d ar

eas f

or sp

atiall

y tar

getin

g both

publi

c and

priva

te se

ctor

inves

tmen

t.

Achie

ved:

None

: ann

ual ta

rget

14

17

Numb

er of

proje

cts w

ithin

identi

fied i

ntegr

ation

zone

s ide

ntifie

d for

plan

ning (

per y

ear)

8

Targ

et:

2 2

4 -

CD: P

LGI

Munic

ipal B

uilt

Envir

onme

nt Pl

ans

12 pr

ojects

wer

e ide

ntifie

d in Q

uarte

r 2 fo

r plan

ning a

nd ar

e cu

rrentl

y in d

iffere

nt sta

ges o

f plan

ning.

Achie

ved:

None

12

18

Numb

er of

integ

rated

city

deve

lopme

nt pr

ojects

unde

r imple

menta

tion

2

Targ

et:

2 CD

: PLG

I Mu

nicipa

l Buil

t En

viron

ment

Plan

s 3 i

ntegr

ated c

atalyt

ic pr

ojects

are c

urre

ntly u

nder

im

pleme

ntatio

n in t

he in

tegra

tion z

ones

. Ac

hieve

d: -

3

Subp

rogr

amm

e: G

autra

in L

oan

19

Lo

an re

paid

Re

paym

ents

made

as

due

Targ

et:

Repa

ymen

ts ma

de as

due

ALM

Divis

ion re

cord

s Pa

ymen

t don

e acc

ordin

g to t

arge

t R1

551 m

, mad

e up o

f R84

0 m ca

pital

and R

711 m

inter

est

was p

aid in

Apr

il. Ac

hieve

d: Ins

talme

nt of

R1 55

1 milli

on, m

ade u

p of R

840 m

illion

capit

al an

d R71

1 milli

on in

teres

t wa

s paid

in A

pril

Subp

rogr

amm

e: E

mpl

oym

ent C

reat

ion

Facil

itatio

n

20

Numb

er of

proje

cts ap

prov

ed

20

new

proje

cts

appr

oved

Targ

et:

20 ne

w pr

ojects

JF

Inve

stmen

t Co

mmitte

e minu

tes

The d

elay e

xper

ience

d by D

BSA

in co

ntrac

ting t

he 3

rd C

FP

proje

cts im

plied

that

there

was

no ca

pacit

y to o

pen a

new

gene

ral fu

nding

roun

d, the

refor

e the

antic

ipated

addit

ional

20 ne

w pr

ojects

, did

not m

ateria

lise.

A sc

ale-u

p fun

ding

roun

d for

exist

ing Jo

bs F

und P

artne

rs wa

s ope

ned i

n Ac

hieve

d: 2

Pa

ge

| 1

53

Perfo

rman

ce in

dica

tor

Qu

arte

rly ta

rget

s and

out

puts

achi

eved

Re

fere

nce/s

ourc

e Ex

plan

atio

n no

te

and

varia

nce

An

nual

targ

et

Q1

Q2

Q3

Q4

Octob

er 20

14 an

d this

yield

ed 2

new

proje

cts. C

umula

tive

(ince

ption

to da

te) nu

mber

of pr

ojects

appr

oved

is 89

21

Va

lue of

gran

t fund

ing ap

prov

ed (c

umula

tive)

R1

155 m

illion

Targ

et:

R1 15

5 milli

on

JF In

vestm

ent

Comm

ittee m

inutes

R1 5

71 m

illion

fund

ing w

as a

ppro

ved

in the

cur

rent

year

. Th

e gra

nt fun

ding t

arge

t was

infor

med

by th

e an

ticipa

ted 20

ad

dition

al pr

ojects

that

a ne

w fun

ding

roun

d wo

uld y

ield,

thus

the a

chiev

ed a

moun

t for

the

app

rove

d tw

o ne

w pr

ojects

is m

uch

less.

Cumu

lative

(inc

eptio

n to

date)

gra

nt fun

ds ap

prov

ed: R

4 661

bn.

Achie

ved:

R1

57 18

1 milli

on

21a

Valu

e of m

atche

d fun

ding

R1

000 m

illion

Targ

et:

R1 00

0 milli

on

JF In

vestm

ent

Comm

ittee m

inutes

The

curre

nt ye

ar v

alue

of fun

ding

match

ed a

moun

ted to

R3

587

milli

on. T

he p

otenti

al ma

tched

fund

ing le

vera

ged

from

the 2

new

app

rove

d pr

ojects

is le

ss th

an a

nticip

ated

if the

Job

s Fu

nd P

MU h

ad b

een

able

to ap

prov

e 20

new

pr

ojects

. Cu

mulat

ive

(ince

ption

to

date)

pla

nned

co

ntribu

tions

to

be l

ever

aged

fro

m the

por

tfolio

of

89

proje

cts is

R6,

823b

n.

Achie

ved:

R358

.795 m

illion

22

Numb

er of

new

jobs c

ontra

cted

30

000

Targ

et:

5 000

5 0

00

10 00

0 10

000

JF P

MU M

onito

ring

reco

rds

The

chan

ge in

the

forma

t of r

epor

ting

(i.e. r

ecor

ding

only

annu

al, n

ot cu

mulat

ive, p

erfor

manc

e) h

as le

d to

reco

rding

ou

r per

forma

nce

differ

ently

. The

two

new

appr

oved

proje

cts

will

not y

ield

new

jobs,

i.e. j

obs

that d

id no

t exis

t befo

re.

Howe

ver

cumu

lative

ly (in

cepti

on t

o da

te) t

he F

und

has

contr

acted

for 1

32 72

5 new

perm

anen

t jobs

again

st a t

arge

t of

150 0

00.

Achie

ved:

0 0

0 0

22a

Numb

er of

new

place

ments

contr

acted

7 0

00

Targ

et:

1 000

1 0

00

2 000

3 0

00

JF P

MU M

onito

ring

reco

rds

Numb

er of

NEW

Plac

emen

ts is

30 35

7 plac

emen

t con

tracts

Th

e tw

o ne

w ap

prov

ed p

rojec

ts ha

ve b

een

contr

acted

to

deliv

er 3

0 357

plac

emen

ts. T

his w

as m

ore

than

antic

ipated

. Cu

mulat

ively

(ince

ption

to da

te) th

e Fun

d has

contr

acted

for

84 51

3 plac

emen

ts.

Achie

ved:

None

1 0

00

2 386

30

357

22b

Num

ber o

f train

ing pl

acem

ents

contr

acted

11

915

Targ

et:

3 000

4 0

00

3 000

1 9

15

JF P

MU M

onito

ring

reco

rds

42 95

7 NEW

train

ing pl

acem

ents:

Th

e two

new

proje

cts ha

ve a

cont

racte

d tar

get o

f 42 9

57,

more

than

origi

nally

antic

ipated

. This

is be

caus

e it c

anno

t Ac

hieve

d: No

ne

4 000

5 3

26

42 95

7

Pa

ge

| 1

54

Perfo

rman

ce in

dica

tor

Qu

arte

rly ta

rget

s and

out

puts

achi

eved

Re

fere

nce/s

ourc

e Ex

plan

atio

n no

te

and

varia

nce

An

nual

targ

et

Q1

Q2

Q3

Q4

be kn

own u

pfron

t wha

t type

of pr

oject

appli

catio

ns w

ill be

re

ceive

d, or

whic

h app

licati

ons w

ill be

appr

oved

by th

e Inv

estm

ent C

ommi

ttee.

Cumu

lative

ly (in

cepti

on to

date)

the

Fund

has c

ontra

cted f

or 20

4 566

train

ing op

portu

nities

. 23

Va

lue of

gran

t fund

ing di

sbur

sed (

in-ye

ar)

R1

300 m

illion

Ta

rget:

R2

00 m

illion

R2

00 m

illion

R3

00 m

illion

R6

00 m

illion

JF

PMU

reco

rds

Total

gran

t fund

s disb

urse

d for

the y

ear a

moun

ted to

R1

.504 b

illion

The

varia

nce i

s due

to sp

ecial

initia

tives

un

derta

ken t

o red

uce t

he di

sbur

seme

nt ba

cklog

Ac

hieve

d: R2

98.15

4 milli

on

R216

.005 m

illion

R3

21.57

6 milli

on

R668

662 m

illion

24

Jobs

Fun

d eva

luatio

n rep

orts

docu

mente

d and

lear

ning o

n effe

ctive

appr

oach

es to

job c

reati

on di

ssem

inated

Two c

ompa

rativ

e an

alysis

stud

ies

One l

earn

ing fo

rum

Ta

rget:

Co

mpar

ative

An

alysis

on w

ork-

seek

ers p

rojec

ts

Comp

arati

ve

analy

sis on

En

terpr

ise

Deve

lopme

nt pr

ojects

One l

earn

ing fo

rum

Ne

wslet

ter

publi

shed

JF P

MU re

cord

s Se

cond

news

letter

to be

publi

shed

durin

g Apr

il 201

5. Jo

bs

Fund

artic

les pu

blish

ed in

Pro

gram

me 8

News

letter

pr

esen

ted to

Par

liame

nt in

March

2015

.

Ac

hieve

d: Re

view

has b

een

comp

leted

Re

view

has b

een

comp

leted

Le

arnin

g for

um he

ld on

1 Se

pt 20

14

2nd n

ewsle

tter t

o be

publi

shed

durin

g Ap

ril 20

15

Jobs

Fun

d new

s as

part

of Pr

ogra

mme

8 pam

phlet

and

GTAC

news

letter

pu

blish

ed

25

Emplo

ymen

t, inc

ome d

istrib

ution

and i

nclus

ive gr

owth

rese

arch

proje

ct (R

EDI3x

3)

10–1

5 res

earch

pa

pers

contr

acted

; 4

works

hops

and 1

po

licy c

onfer

ence

Targ

et:

1 wor

ksho

p 1 w

orks

hop

1 poli

cy co

nfere

nce

1 wor

ksho

p 1 w

orks

hop

SALD

RU pr

oject

reco

rds a

nd m

inutes

of

REDI

3x3 s

teerin

g co

mmitte

e

Wor

ksho

ps w

ere h

eld on

the i

nform

al se

ctor a

nd in

clusiv

e gr

owth.

Achie

ved:

A wo

rksho

p on t

he

infor

mal s

ector

was

ho

sted i

n Jun

e at

UCT

Polic

y con

feren

ce

postp

oned

Inc

lusive

grow

th wo

rksho

p held

in

Nove

mber

2014

2nd w

orks

hop o

n the

infor

mal s

ector

he

ld in

March

2015

Pa

ge

| 1

55

Perfo

rman

ce in

dica

tor

Qu

arte

rly ta

rget

s and

out

puts

achi

eved

Re

fere

nce/s

ourc

e Ex

plan

atio

n no

te

and

varia

nce

An

nual

targ

et

Q1

Q2

Q3

Q4

Subp

rogr

amm

e: In

frast

ruct

ure D

evelo

pmen

t Sup

port

26

Numb

er of

tech

nical

assis

tants

deplo

yed i

n par

ticipa

ting d

epar

tmen

ts to

supp

ort th

e dev

elopm

ent o

f cap

acity

in lin

e with

the

IDMS

31

tech

nical

assis

tants

in pr

ovinc

ial

depa

rtmen

ts

Targ

et:

10

21 (n

ew)

Ongo

ing m

onito

ring

and r

epor

ting

Ongo

ing m

onito

ring

and r

epor

ting

CD: P

LGI

TA co

ntrac

ts an

d re

ports

Out o

f the a

nnua

l targ

et of

31 te

chnic

al as

sistan

ts de

ploye

d a to

tal of

14 w

ere p

rocu

red.

Th

e rem

ainde

r wer

e not

proc

ured

and d

eploy

ed du

e to

the fin

aliza

tion o

f the p

lannin

g and

desig

n for

IDIP

Ph

ase I

V.

Ac

hieve

d: No

ne

9 2

3

27

Numb

er of

offic

ials t

raine

d on t

he In

frastr

uctur

e Deli

very

Mana

geme

nt (ID

M) T

oolki

t to su

ppor

t impr

oved

infra

struc

ture d

elive

ry in

prov

inces

15

0 gov

ernm

ent

offici

als tr

ained

on th

e ID

M too

lkit

Targ

et:

150

CD: P

LGI

Train

ing re

ports

and

atten

danc

e reg

ister

s

340 o

fficial

s tra

ined.

This

traini

ng is

dema

nd dr

iven a

nd

prov

incial

dema

nd ex

ceed

ed th

e tar

get w

ith a

posit

ive

varia

nce o

f 190

. Ac

hieve

d: 34

0

28

Numb

er of

grad

uates

train

ed (in

train

ing) in

line w

ith th

e rele

vant

statut

ory b

ody r

equir

emen

ts in

engin

eerin

g, tow

n plan

ning,

geog

raph

ic inf

orma

tion s

ystem

s and

proje

ct ma

nage

ment

35

0 gra

duate

s tra

ined

(in tr

aining

)

Targ

et:

350

CD: P

LGI

Munic

ipal re

ports

to

NT

The a

nnua

l targ

et is

350,

howe

ver;

munic

ipaliti

es re

cruite

d a t

otal o

f 424

grad

uates

. Th

e num

ber o

f gra

duate

s dec

reas

ed fr

om 43

6 to 4

24 as

so

me w

ere i

napp

ropr

iately

plac

ed on

the p

rogr

amme

and

some

resig

ned,

thus l

eadin

g to a

posit

ive va

rianc

e of 7

4.

Achie

ved:

424

P a g e | 156

ANNEXURE 2: ABBREVIATIONS CSP Concentrated solar power FET Further education and training FMCMM Financial Management Capability Maturity Model FMPPI Framework for managing programme performance information GTAC Government Technical Advisory Centre IDMS Infrastructure delivery management system IPP Independent power producer IPPPP Independent Power Producer Procurement Programme MAFISA Micro Agriculture Finance Institutions of South Africa MFIP Municipal Finance Improvement Programme MoU Memorandum of understanding PPP Public-private partnership PRASA Passenger Rail Agency of South Africa PV Photovoltaic REIPPPP Renewable Energy Independent Power Producer Procurement Programme SANBI South African National Biodiversity Institute SIP Strategic Integrated Project

P a g e | 157

ANNUAL - GTAC · 2017-05-13 · ANNUAL REPORT 2014/15 Government Technical Advisory Centre &...

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